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Bonds slips on weak demand; call rates ends lower

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Press Trust of India Mumbai
The government bond (G-Sec) prices slipped following fresh selling pressure from banks and corporates amid profit-taking by market participants.

Interbank call money rate also finished lower owing to lack of demand from borrowing banks on the back of tight liquidity conditions in the banking system.

The 10-year benchmark bond 7.72 per cent maturing in 2025 moved down to Rs 99.47 from Rs 99.52 yesterday, while its yield edged-up to 7.88 per cent from 7.79 per cent.

The 8.40 per cent government security maturing in 2024 eased to Rs 102.75 against Rs 102.79, while its yield held stable at 7.96 per cent.
 

The 7.88 per cent government security maturing in 2030 fell to Rs 99.2750 from Rs 99.3175, while its yield ruled stable to 7.96 per cent.

The 8.27 per cent government security maturing in 2020, the 7.68 per cent government security maturing in 2023 and the 8.12 per cent government security maturing in 2020 were also quoted lower at Rs.101.2850, Rs 98.4650 and Rs 100.50, respectively.

The overnight call money rates ended lower at 7.20 per cent from Monday's closing level of 7.55 per cent after moving in a range of 7.25 per cent and 7.05 per cent in early trade.

Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 20.26 billion in 9-bids at the one-day overnight repo auction at a fixed rate of 7.25 per cent this morning, while its sold securities worth Rs 22.97 billion from 20-bids at the reverse repo auction at a fixed rate of 6.25 per cent late yesterday.

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First Published: Aug 11 2015 | 7:13 PM IST

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