Government securities (G-sec) continued its bearish trend on selling demand from banks and companies. The 8.20 per cent G-sec maturing in 2025 fell to Rs 103.72 from Rs 104.12 on Tuesday, while its yield climbed to 7.72 per cent from 7.67 per cent. The 8.33 per cent G-sec maturing in 2026 dropped to Rs 104.98 from Rs 105.37, while its yield gained to 7.72 per cent from 7.67 per cent. The 8.15 per cent G-sec maturing in 2022 dipped to Rs 102.93 from Rs 103.22, while its yield rose to 7.69 per cent from 7.64 per cent. The 8.07 per cent G-sec maturing in 2017, the 7.16 per cent G-sec maturing in 2023 and the 8.12 per cent G-sec maturing in 2020 were also quoted lower by Rs 101.02, Rs 97.63 and Rs 102.05, respectively.
The yield on the 8.15 per cent notes jumped four basis points, or 0.04 percentage point, to 7.69 per cent, according to the Reserve Bank of India (RBI)'s trading system. The rate climbed 18 basis points last month, the most since the securities were issued in June 2012. The one-year interest-rate swap, a derivative contract used to guard against fluctuations in funding costs, rose three basis points to 7.56 per cent, data compiled by Bloomberg show.
Call rates end lower
Call money rates ended lower due to lack of demand from borrowing banks. The rates finished lower at 6.50 per cent. It moved in a range of 7.30 per cent and 6.30 per cent.
RBI under the liquidity adjustment facility purchased securities worth Rs 17,215 crore in 14 bids at the one-day repo auction and a fixed rate of 7.25 per cent and sold securities worth Rs 6,335 crore in 11 bids at the one-day reverse repo auction at a fixed rate of 6.25 per cent.
