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Gilts drop on weak demand; call rates end soft

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Press Trust of India Mumbai
The government bond (G-Sec) prices dropped following renewed selling by banks and market participants.

Interbank call money rate also turned soft owing to lack of demand from borrowing banks on the back of adequate liquidity conditions in the banking system.

The 10-year benchmark bond 8.40 per cent maturing in 2024 fell to Rs 103.1875 from Rs 103.33 last weekend, while its yield firmed up to 7.90 per cent compared with 7.88 per cent.

The 7.72 per cent government security maturing in 2025 slipped to Rs 99.88 against Rs 100.07, while its yield gained to 7.74 per cent from 7.71 per cent.
 

The 8.27 per cent government security maturing in 2020 declined to Rs 101.38 from Rs 101.54, while its yield edged higher to 7.93 per cent from 7.89 per cent.

The 8.60 per cent government security maturing in 2028, the 7.68 per cent government security maturing in 2023 and the 8.15 per cent government security maturing in 2026 were also quoted lower at Rs 104.68, Rs 98.60 and Rs 101.09, respectively.

The overnight call money rates finished marginally lower at 7.25 per cent from 7.28 last Friday after trading in a tight range of 7.30 per cent and 6.50 per cent.

Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 42.62 billion in 9-bids at 1-day repo auction at a fixed rate of 7.25 per cent this morning.

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First Published: Jun 22 2015 | 7:22 PM IST

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