Gilts spurt on good demand, call rates remain weak

The government bond (G-Sec) prices firmed up following increased demand from corporates and banks.
Meanwhile, the overnight call money rates dropped sharply due to lack of demand from borrowing banks on the back of comfortable liquidity in the banking system.
The three-day call money rate also slipped owing to lack of demand.
The 8.60 per cent government security maturing in 2028 moved up to Rs 99.31 from Rs 99.26 previously, while its yield softened to 8.68 per cent.
The 8.83 per cent government security maturing in 2023 rose to Rs 100.87 compared to Rs 100.85, however, yield held steady at 8.69 per cent.

The 8.27 per cent government security maturing in 2020 spiked to Rs 98.4950 against Rs 98.4525 yesterday, it yield eased to 8.60 per cent.

The 8.12 per cent government security maturing in 2020 rose to Rs 97.33 from Rs 97.31, while yield edged-down to 8.68 per cent as against 8.69 per cent.
The 7.28 per cent government security maturing in 2019 also gained to Rs 94.9750 from Rs 94.94, while its yield edged down to 8.58 per cent.
However, the 8.28 per cent government security maturing in 2027 looked down to Rs 95.97 from Rs 95.98, while its yield inched up to 8.80 per cent compared to 8.80 per cent.

The overnight call money rates fell sharply to 6.50 per cent from 7.00 per cent yesterday after moving between 7.30 per cent and 7.25 per cent earlier. The three-days call money rate slipped to 7.05 per cent as compared to Rs 8.60 last Friday. It hovered in a wide range of 8.10 and 7.95 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 39.50 billion in 12-bids at the three-days repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 43.77 billion from 25-bids at one-day reverse repo auction at a fixed rate of 7.00 per cent, yesterday evening.