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Bonds recover; call rates end higher

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Press Trust of India Mumbai
The government bonds (G-Secs) recovered on fresh buying support from banks and corporates.

The overnight call money rate ended higher due to good demand from borrowing banks amid tight liquidity in the banking system.

The 8.40 per cent 10-year benchmark bond maturing in 2024 climbed to Rs 101.43 from Rs 101.20 previously, while its yield slipped to 8.18 per cent from 8.22 per cent.

The 8.60 per cent government security maturing in 2028 rose to Rs 102.72 from Rs 102.3875, while its yield moved down to 8.26 per cent from 8.30 per cent.

The 8.27 per cent government security maturing in 2020 also gained to Rs 100.06 from Rs 99.90, while its yield eased to 8.25 per cent from 8.29 per cent.
 

The 8.83 per cent government security maturing in 2023, 8.28 per cent government security maturing in 2027 and the 8.35 per cent government security maturing in 2023 were also quoted higher at Rs 103.41, Rs 99.83 and Rs 100.22, respectively.

The overnight call money rates ended higher at 8.15 per cent from last Friday's closing level of 7.50 per cent. It moved in range of 8.25 per cent and 7.50 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 182.87 billion in 42-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 31.47 billion from 23-bids at the 3-days reverse repo auction at a fixed rate of 7.00 per cent as on November 14.

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First Published: Nov 17 2014 | 6:35 PM IST

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