The price of the gilt, which opened at Rs 101.70, gained 10 paise during the day to touch Rs 101.80.
"The rise in the price of the paper was because today was the last day before the trading in the security closes," a dealer in the debt market said.
"The interest on this security is payable on September 1 and there was rush to buy this paper. As a result, the price of the security went up by 10 paise," he added.
The demand for the gilt was high and the sellers were able to hike the price of the security. With call rates likely to rule between 10 and 10.75 per cent, bankers feel that there is likely to be a rise in the yields on the treasury bills.
The 13.50-per cent central government security maturing in 1998 was trading at 13.66 per cent, while the 13.62-per cent central government paper maturing in the same year was quoting at 13.63 per cent.