Government bonds declined on fresh selling pressure from banks and companies.
The benchmark 10-year bond yield rose two basis points to 8.20 percent, on caution ahead of August inflation data, due Friday and fiscal second-half borrowing due in end-September.
The 8.33 per cent government security maturing in 2026 dipped to Rs 99.89 from 100.08 yesterday, while its yield moved up to 8.34 per cent from 8.32 per cent.
The 8.15 per cent government security maturing in 2022 fell to Rs 99.66 from 99.76, while its yield gained to 8.20 per cent from 8.18 per cent.
The 8.19 per cent government security maturing in 2020 declined to Rs 99.45 from Rs 99.50 while its yield inched up to 8.29 per cent from 8.28 per cent.
The 8.07 per cent government security maturing in 2017, the 8.97 per cent government security maturing in 2030 and the 7.17 per cent government security maturing in 2015 were also quoted lower at Rs 99.44, Rs 103.75 and Rs 97.95, respectively.
Call rates rule steady
Call money rates maintained a steady trend at the overnight money market here on Wednesday as demand from borrowing banks matched supplies. The call money rate finished stable at 8.05 per cent. It moved in a range of 8.05 per cent and 7.95 per cent.
The Reserve Bank of India under the Liquidity Adjustment Facility purchased securities worth Rs 307.45 billion from 15 bids at the one-day repo auction at a fixed rate of eight per cent. Rates may shoot up next week when advance tax outflows flow out from the banking system.
