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Bonds rebound on good demand, call rates firm up

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Press Trust of India Mumbai
Government bonds (G-Sec) prices recovered following renewed buying support from banks and corporates.

Call rates also recovered due to a fresh demand from borrowing banks amid tight liquidity conditions in the banking system.

The 10-year benchmark bond 7.72 per cent maturing in 2025 moved up to Rs 99.2500 from Rs 99.2000, while its yield fell to 7.82 per cent.

The 7.68 per cent government security maturing in 2023 spurted up to Rs 98.0775 from Rs 97.8150 while its yield eased to 8.00 per cent.

The 8.27 per cent government security maturing in 2020 rose to Rs 101.0375 from Rs 100.9875, while its yield softened to 8.00 per cent.
 

The 7.88 per cent government security maturing in 2030, 8.15 per cent government security maturing 2026 and 7.16 per cent government security maturing in 2023 also quoted substantially higher Rs 98.0775, Rs 100.18 and Rs 94.63, respectively.

However, the 8.40 per cent government security maturing in 2024 fell to Rs 102.37 from 102.3875 while its yield ruled inched up to 8.03 per cent.

Interbank call money rate finished higher at 7.00 per cent from Tuesday's level of 6.40 per cent.

Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 74.40 billion in 19 bids at overnight repo auction at a fixed rate of 7.25 per cent this morning, while its sold securities worth Rs 30.08 billion from 22 bids at the reverse repo auction at a fixed rate of 6.25 per cent yesterday.

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First Published: Jul 22 2015 | 7:22 PM IST

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