The government bonds dropped on continued selling pressure from banks and corporates.
The 7.16 per cent government security maturing in 2023 dipped to Rs 89.50 from 92.23 on Monday, while its yield moved up to 8.78 per cent from 8.34 per cent.
The 8.20 per cent government security maturing in 2025 fell to Rs 93.50 from 95.75, while its yield gained 9.10 per cent from 8.78 per cent. The 8.33 per cent government security maturing in 2026 slid to Rs 94.30 from Rs 96.61, while its yield rose to 9.09 per cent from 8.77 per cent.
The 7.28 per cent government security maturing in 2019, the 8.12 per cent government security maturing in 2020 and 8.15 per cent government security maturing in 2022 also quoted lower at Rs 91.67, Rs 94.50 and Rs 94.85, respectively.
Call rates also finish lower
Call rates declined at the overnight call money market here on Tuesday due to lack of demand from borrowing banks.
Call money rate finished lower at 10.15 per cent from Monday's 10.20 per cent, it moved in a range of 10.50 per cent and 10.10 per cent.
The Reserve Bank of India under the Liquidity Adjustment Facility purchased securities worth Rs 39,779 crore from 64 bids at the one-day repo auction at a fixed rate of 7.25 per cent. It sold securities worth Rs 256 crore from five-bids at the one-day reverse repo auction at a fixed rate of 6.25 per cent in the evening auction.
