Gilts end mixed ahead of Brexit vote outcome, call rates up

Government bonds (G-Secs) prices ended in decidedly mixed fashion after a day of heavy trading due to alternate bouts of buying and selling even as historic Brexit referendum continued to dominate sentiment.

However, interbank call rates recovered after a brief fall on the back of some demand from borrowing banks amid tight liquidity in the banking system.

Most investors and traders preferred to remain on sidelines awaiting the outcome of Britain's referendum on its European Union membership.

Government security of 7.59% maturing in 2029 slipped to Rs 99.3175 from Rs 99.34 on Wednesday, while its yield held steady at 7.67%.

The 7.59% government security maturing in 2026 also dropped to Rs 100.74 from Rs 100.7625, while its yield held stable at 7.48%.
 
Government security of 7.88% maturing in 2030 firmed up to Rs 101.1775 as against Rs 101.12, while yield held at 7.74%.

Government security of 8.27% maturing in 2020, the 7.68% government security maturing in 2023 and the 7.72% government security maturing in 2025 were also quoted higher at Rs 103.2525, Rs 100.6325 and Rs 100.4575.

The overnight call money rates settled modestly higher at 6.35% from Wednesday's closing of 6.10% after moving in a small trading range of 6.30% and 6.65% during the day.

Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 178.08 billion in 38-bids at one-day overnight repo auction at a fixed rate of 6.50% on Thursday evening.

It sold securities worth Rs 36.24 billion from 28-bids at the one-day reverse repo auction at a fixed rate of 6.00% on late Wednesday.