Bonds surge, call rates turn lower

Government bonds (G-Secs) prices surged on heavy buying support from banks and corporates, but the overnight call money rates turned lower following poor demand from borrowing banks amidst ample liquidity in the banking system.

The 7.59 per cent government security maturing in 2026 advanced to Rs 103.2450 from Rs 103.1475 previously, while its yield inched down to 7.11 per cent from 7.12 per cent.

The 7.59 per cent government security maturing in 2029 gained to Rs 103.75 from Rs 103.63, while its yield down to 7.13 per cent from 7.15 per cent.

The 7.61 per cent government security maturing in 2030 rose to Rs 104.6450 from Rs 104.54, while its yield edged down to 7.07 per cent from 7.08 per cent.
 

The 7.88 per cent government security maturing in 2030, the 7.68 per cent government security maturing in 2023 and the 7.72 per cent government security maturing in 2025 were also quoted higher to Rs 106.46, Rs 103.32 and Rs 103.7450, respectively.

The overnight call money rates finished lower at 6.30 per cent from Monday's level of 6.55 per cent. It resumed lower at 6.45 per cent and moved in a range of 6.60 per cent and 6.05 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 107.18 billion in a 18-bids at the overnight repo auction at a fixed rate of 6.50 per cent as on today, while it sold securities worth Rs 41.93 billion from 27-bids at the overnight reverse repo auction at a fixed rate of 6.00 per cent as on August 29.