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Bonds remain bearish, call rates end lower

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Press Trust of India Mumbai
The government bond (G-Sec) prices continued its downtrend on persistent selling from banks and corporates.

The overnight call money rate slipped due to lack of demand from borrowing banks.

The 8.60 per cent government security maturing in 2028 eased to Rs 99.9375 from Rs 99.94 previously, while its yield held steady at 8.61 per cent.

The 8.35 per cent government security maturing in 2022 declined to Rs 97.64 from Rs 97.7350, while its yield gained to 8.77 per cent from 8.75 per cent.

The 8.12 per cent government security maturing in 2020 fell to Rs 97.10 from Rs 97.1250, while its yield inched-up to 8.72 per cent from 8.71 per cent
 

The 8.28 per cent government security maturing in 2027, 8.24 per cent government security maturing in 2027 and 7.28 per cent government security maturing in 2019 were also quoted lower at Rs 96.21, Rs 95.88 and Rs 94.78, respectively.

However, the 8.83 per cent 10-year benchmark bond maturing in 2023 edged up to Rs 100.6325 from Rs 100.63, while its yield held stable at 8.73 per cent.

The overnight call money rates ended higher at 9.00 per cent from Monday's closing level of 8.75 per cent. It moved in range of 9.00 per cent and 8.00 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 217.86 billion in 59-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 21.06 billion from 13-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last Friday.

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First Published: Jul 09 2014 | 6:41 PM IST

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