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Bonds end mixed, call rates extend fall

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Press Trust of India Mumbai
The government bonds prices ended mixed due to alternate bouts of buying and selling amid nervousness over liquidity as well as concerns over next fiscal's government borrowing.

Overnight call money rates continued its slide owing to lack of demand from borrowing banks on the back of ample liquidity in the banking system.

The 8.83 per cent 10-year benchmark bond maturing in 2023 firmed up further to Rs 100.14 from Rs 100.1150 last Friday, while its yield softened to 8.80 per cent from 8.81 per cent.

However, the 8.28 per cent government security maturing in 2027 declined to Rs 92.42 from Rs 92.45 previously, while yield finished stable at 9.27 per cent.
 

The 7.28 per cent government security maturing in 2019 slipped to Rs 93.06 from Rs 93.09, while yield edged up to 8.95 per cent from 8.94 per cent.

The 8.12 per cent government security maturing in 2020 also dropped to Rs 94.73 from Rs 94.82, while yield fell to 9.17 per cent from 9.15 per cent.

The 8.32 per cent government security maturing in 2032, the 7.16 per cent government security maturing in 2023 and the 9.20 per cent government security maturing in 2030 were also quoted lower at Rs 91.75, Rs 87.40 and Rs 99.61, respectively.

The overnight call money drifted to 7.05 percent from last weekend level of 8.85 per cent after trading between a high of 8.95 per cent and a low of 7.00 per cent earlier.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 383.07 billion in 61-bids at the 1-day repo auction at a fixed rate of 8.00 per cent on today morning.

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First Published: Feb 17 2014 | 7:04 PM IST

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