Bonds recover on fresh buying,while call rate decline

The Government securities (G-Sec) recovered smartly on fresh demand from banks and corporates,while call rate declined at the Overnight call money market today due to lack of demand from borrowing banks amid ample liquidity in the banking system.

The Government securities (G-Sec) recovered smartly on fresh demand from banks and corporates,while call rate declined at the Overnight call money market today due to lack of demand from borrowing banks amid ample liquidity in the banking system.

The 8.79 per cent (G-Sec) maturing in 2021 rose to Rs 102.56 from Rs 102.30 yesterday,while its yield dropped to 8.39 per cent from 8.43 per cent.

The 8.15 per cent (G-Sec) maturing in 2022 climbed to Rs 100.2625 from Rs 99.88,while its yield fell to 8.11 per cent from 8.17 per cent.

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The 8.19 per cent (G-Sec) maturing in 2020 firmed up to Rs 99.53 from Rs 99.43,while its yield eased to 8.27 per cent from 8.29 per cent.

The 8.28 per cent G-Sec maturing in 2027,the 7.17 per cent G-Sec maturing in 2015 and the 8.97 per cent maturing in 2030 also quoted higher at Rs 97.81,Rs 97.83 and Rs 103.30,respectively.

The overnight call money rate ended lower at 8.00 per cent from yesterday’s close of 8.15 per cent,it moved in a range of 8.35 per cent and 8.00 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 1,32,565 crore from 51 bids at the one-day repo auction at a fixed rate of 8.00 per cent.