Gilts retreat on fresh selling; call rates recover

Government bonds (G-Secs) fell after a brief rebound on renewed selling pressure from banks and corporates amid profit-taking by market participants.
Meanwhile, the call money rates recovered at the overnight call money market due to good demand from borrowing banks amid tight liquidity conditions in the banking system.
The 8.40 per cent government security maturing in 2024 dropped to Rs 104.5750 from last weekend level of Rs 104.65, while its yield moved up to 7.71 per cent from 7.70 per cent.
The 8.60 per cent government security maturing in 2028 dropped to Rs 107.20 compared to Rs 107.3275, while yield improved to 7.72 per cent from 7.71 per cent.

The 8.15 per cent government security maturing in 2026 also slipped to Rs 103.87 against Rs 103.95, while yield edged up to 7.64 per cent from 7.63 per cent.
The 8.27 per cent government security maturing in 2020, the 7.28 per cent government security maturing in 2019 and the 8.83 per cent government security maturing in 2023 were quoted substantially lower at Rs 102.31, Rs 98.39 and Rs 106.5850, respectively.
The overnight call money rates ended firmly higher at 7.75 per cent from last Friday's level of 6.80 per cent. It fluctuated between a high of 8.35 per cent and a low of 6.75 earlier.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 188.01 billion in 51-bids at the 2-days repo auction at a fixed rate of 7.75 per cent today.