Bonds continue its downtrend, call rate also eases

The Government bonds securities (G-Sec) continued its downtrend on sustained selling by banks and corporates, while call rate ended lower at the overnight call money market here today due lack of demand from borrowing banks.

The 8.20 percent government security maturing in 2025 dropped to Rs 106.28 from Rs 106.40 yesterday, while its yield edged up to 7.41 percent from 7.40 percent.

The 8.33 percent government security maturing in 2026 declined to Rs 107.53 from Rs 107.65, while its yield inched up to 7.42 pct from 7.41 pct. The 8.15 percent government security maturing in 2022 also went down to Rs 104.58 from Rs 104.60, while its yield held steady at 7.44 percent.

The 7.16 percent government security maturing in 2023, the 8.07 percent maturing in 2017 and the 8.12 percent maturing in 2020 also moved down to Rs 99.44, Rs 102.55 and Rs 104.4375, while their yields grew to 7.24 pct, 7.33 pct and 7.34 pct respectively.

The Overnight call money rate finished lower at 6.60 percent from yesterday's level of 6.75 percent. It moved in a range of 7.30 percent and 6.50 percent. The 3-days call money rate also ended lower at 7.00 percent from previous closing level of 7.25 percent and it moved in a range of 7.35 percent and 6.85 percent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 494.75 billion in 28-bids at the three-days repo auction at a fixed rate of 7.25 percent.