Bonds decline, call rates end lower

Government bonds (G-Secs) declined on selling pressure from banks and corporates and the overnight call money rates also ended lower owing to poor offtake from borrowing banks amid ample liquidity in the banking system.

The 6.79 percent government security maturing in 2027 were fell to Rs 100.6025 from Rs 100.9875 yesterday, while its yield moved up to 6.70 percent from 6.65 percent.

The 6.79 percent government security maturing in 2029 dipped to Rs 98.4425 from Rs 98.9950, while its yield went-up to 6.98 percent from 6.91 percent.

The 6.68 per cent government security maturing in 2031 slid to Rs 98.15 from Rs 98.5250, while its yield edged up to 6.89 percent from 6.85 percent.

The 7.72 per cent government security maturing in 2025, the 7.16 per cent government security maturing in 2023 and the 6.35 percent government security maturing in 2020 were also quoted lower to Rs 104.4250, Rs 101.73 and Rs 99.8250 respectively.

The overnight call money rates ended lower at 5.76 percent from Tuesday's level 5.85 percent. It resumed higher at 6.00 percent and moved in a range of 6.00 percent and 5.70 percent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 21.17 billion in a 4-bids at the overnight repo operations at a fixed rate of 6.00 percent as on today, while its sold securities worth Rs 145.09 billion from 44-bids at the overnight reverse repo auction at a fixed rate of 5.75 percent as on October 03.