The government bond (G-Sec) prices tumbled further following intense selling from banks and corporates as well as profit-taking by market participants.
While, overnight call rates recovered on the back of renewed demand from borrowing banks amid tight liquidity conditions in the banking system.
The 8.40 per cent government security maturing in 2024 declined to Rs 99.04 from Rs 99.18, while yield rose to 8.54 per cent from 8.52 per cent.
The 8.60 per cent government security maturing in 2028 dropped to Rs 99.2650 from Rs 99.42, yield moved up to 8.69 per cent from 8.67 per cent.
The 8.83 per cent government security maturing in 2023 slumped to Rs 100.7150 from Rs 100.83, while yield gained to 8.71 per cent against 8.69 per cent.
The 8.27 per cent government security maturing in 2020, the 8.12 per cent government security maturing in 2020, the 7.28 per cent government security maturing in 2019 and the 7.80 per cent government security maturing in 2020 were also quoted substantially lower at Rs 98.4275, Rs 97.2575, Rs 94.9750 and Rs 95.9200, respectively.
The overnight call money rates finished higher at 7.30 per cent compared to 7.05 per cent yesterday after fluctuating between 8.05 per cent and 7.20 per cent earlier.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 42.60 billion in 13-bids at the one day repo auction at a fixed rate of 8.00 per cent, while it sold securities worth Rs 107.43 billion from 27-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent, yesterday evening.
