Business Standard

Bonds weaken, call rates turn higher

Image

Press Trust of India Mumbai
Government bonds (G-Secs) weakened further on selling pressure from banks and corporates but the Interbank call money rates turned higher due to good demand from borrowing banks amid tight liquidity in the banking system.

The 7.59 per cent government security maturing in 2026 dipped to Rs 104.9950 from Rs 105.1950 previously, while its yield moved up to 6.85 per cent from 6.82 per cent.

The 7.59 per cent government security maturing in 2029 dropped to Rs 104.98 from Rs 105.1075, while its yield inched up to 6.98 per cent from 6.97 per cent.

The 7.61 per cent government security maturing in 2030 fell to Rs 105.51 from Rs 105.68, while its yield edged up to 6.97 per cent from 6.96 per cent.
 

The 7.88 per cent government security maturing in 2030, the 6.97 per cent government security maturing in 2026 and 7.68 per cent government security maturing in 2023 were also quoted lower at Rs 107.45, Rs 101.4825 and Rs 104.69 respectively.

The overnight call money rates finished higher at 6.20 per cent from Wednesday's level of 6.10 per cent. It opened higher at 6.30 per cent and moved in a range of 6.40 per cent and 6.20 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 99.40 billion in a 21-bids at the overnight repo auction at a fixed rate of 6.25 per cent as on today, while it sold securities worth Rs 31.81 billion from 25-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on October 19.

Disclaimer: No Business Standard Journalist was involved in creation of this content

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Oct 20 2016 | 6:42 PM IST

Explore News