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Bonds end narrowly mixed, call rates remain firm

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Press Trust of India Mumbai
Government bonds (G-Secs) ended narrowly mixed in a quiet trade due to alternate bouts of buying and selling.

The interbank call rates, however remained firm on the back of good demand from borrowing banks amid tight liquidity in the banking system.

The benchmark 7.59 per cent government security maturing in 2026 inched up to Rs 102.31 as against Rs 102.30 last weekend, while its yield held steady at 7.25 per cent.

The 7.59 per cent government security maturing in 2029 strengthened to Rs 101.70 from Rs 101.61, while its yield softened to 7.38 per cent from 7.39 per cent.

The 7.88 per cent government security maturing in 2030 edged up to Rs 104.21 from Rs 104.1750, its yield eased to 7.38 per cent.
 

The 7.61 per cent government security maturing in 2023, the 7.68 per cent government security maturing in 2025 and the 8.27 per cent government security maturing in 2020 were also quoted modestly higher at Rs 102.38, Rs 102.5875 and Rs 104.1075, respectively.

On the other hand, the 8.27 per cent government security maturing in 2020 and 7.80 per cent government security maturing in 2021 settled marginally weak at Rs 104.1075 and Rs 102.7175, respectively.

The overnight call money rates ended higher at 6.55 per cent compared to last Friday's close of 6.20 per cent. It hovered between 6.70 per cent and 6.00 per cent during the day.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 106.07 billion in 19-bids at one-day overnight repo auction at a fixed rate of 6.50 per cent this evening.

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First Published: Jul 25 2016 | 7:02 PM IST

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