Bonds recover on good demand, call rate end higher

The government securities (G-Sec) recovered on good buying support from banks and corporates, while call rates remained higher at the overnight call money market here today on good demand from borrowing banks. The 8.33% G-Sec maturing in 2026 climbed to Rs 100.27 from Rs 100.0725 yesterday, while its yield declined 8.29% from 8.32%.

The 8.15% G-Sec maturing in 2022 surged to Rs 99.8775 from 99.7775, while its yield inched down to 8.17% from 8.18%.

The 8.19% G-Sec maturing in 2020 also rose to Rs 99.5650 from 99.47, while its yield eased to 8.27% from 8.28%. The 8.97% G-Sec maturing in 2030, the 8.07% maturing in 2017 and the 9.15% maturing in 2024 also quoted higher at Rs 104.2650, Rs 99.55 and Rs 105.84, respectively.

The Overnight call money rate ended higher at 8.05% from 8.00% yesterday, it moved in a range of 8.10% and 7.95%. The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 681.25 billion in 24 bids at the two-day repo auction at a fixed rate of 8.00%, while sold securities worth Rs 0.05 billion from one bid at the two-day reverse repo auction at a fixed rate of 7%.