Gilts gains; call rates turns higher

The government bond (G-Sec) prices gained further on persistent buying support from banks and corporates and the overnight call money rate ended higher at the money market due to good demand from borrowing banks amid tight liquidity in the banking system.
The 10-year benchmark bond 8.40 per cent maturing in 2024 climbed to Rs 102.6750 from Rs 102.5750 previously, while its yield eased to 7.98 per cent as compared to 7.99 per cent.
The 7.72 per cent government security maturing in 2025 rose to Rs 99.37 against Rs 99.33, while its yield edged-down to 7.81 per cent from 7.82 per cent.

The 8.27 per cent government security maturing in 2020 gained to Rs 100.0750 from Rs 100.9625, while its yield moved down to 8.00 per cent from 8.03 per cent.
The 7.68 per cent government security maturing in 2023, the 8.60 per cent government security maturing in 2028 and the 7.88 per cent government security maturing in 2030 were also quoted higher at Rs 98.0525, Rs 104.11 and Rs 98.95, respectively.
The overnight call money rates ended higher at 7.00 per cent compared to 6.80 per cent yesterday after trading in a tight range of 8.20 per cent and 6.70 per cent.

Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility (LAF),purchased securities worth Rs 24.97 billion in 9-bids at 1-day repo auction at a fixed rate of 7.25 per cent this morning. While, it sold securities worth Rs 193.10 billion from 36-bids at the 1-day Overnight reverse repo auction at a fixed rate of 6.25 per cent as on July 01.