Bonds end mixed, call rates finish lower

Government bonds (G-Secs) ended mixed on alternate bouts of buying and selling, while the overnight call money rate finished lower at the money market due to lack of demand from borrowing banks amid ample liquidity in the banking system. The 7.59 percent government security maturing in 2026 declined to Rs 99.55 from Rs 99.63 previously, while its yield moved up to 7.65 percent from 7.64 percent. The 8.27 percent government security maturing in 2020 rose to Rs 102.0025 from Rs 101.9450, while its yield quoted down to 7.70 percent from 7.72 percent.

The 7.59 percent government security maturing in 2029 fell to Rs 97.46 from Rs 97.4650, while its yield inched up to 7.91 percent from 7.90 percent. However, the 7.88 percent government security maturing in 2030 and the 7.72 percent government security maturing in 2025 were quoted higher at Rs 98.9150 and Rs 99.51 respectively. The overnight call money rates finished lower at 6.60 percent from Tuesday's closing level of 7.50 percent.

It resumed higher at 7.00 percent and moved in a range of 7.15 percent and 6.50 percent. Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 216.14 billion in 49-bids at the fixed rate repo operations at a fixed rate of 6.75 percent as on Wednesday, while it sold securities worth Rs 33.81 billion in 28-bids at the overnight reverse repo auction at a fixed rate of 5.75 percent as on March 8.