The government bond (G-Sec) prices declined due to renewed selling by banks and corporates as well as profit-taking by market participants in the run-up to the RBI monetary policy meet.
Interbank call money rate also weakened owing to lackluster demand from borrowing banks supported by comfortable liquidity conditions in the banking system.
The Reserve Bank of India will announce its third bi-monthly policy statement for the year 2015-16 tomorrow.
The 7.72 per cent government security maturing in 2025 moved down to Rs 99.35 from weekend level of Rs 99.40, while its yield remained stable at 7.81 per cent.
The 8.40 per cent government security maturing in 2024 fell to Rs 102.6425 as compared to Rs 102.6825, its yield also held steady 7.98 per cent.
The 8.27 per cent government security maturing in 2020 slipped to Rs 101.25 against Rs 101.3075, while yield gained to 7.95 per cent.
The 7.68 per cent government security maturing in 2023, the 8.60 per cent government security maturing in 2028 and the 8.15 per cent government security maturing in 2026 also quoted substantially lower at Rs 98.35, Rs 104.28 and Rs 100.57, respectively.
However, the 7.88 per cent government security maturing in 2030 gained to Rs 99.23 from Rs 99.22 previously, while yield held stable at 7.97 per cent.
The overnight call money rates eased marginally to 6.75 per cent from last Friday's closing level of 6.80 per cent. It moved in a range of 7.25 per cent and 6.50 per cent in early trade.
Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 21.56 billion in 8-bids at the one-day overnight repo auction at a fixed rate of 7.25 per cent this morning.
