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This is an archive article published on May 7, 2012

Bonds remain mixed while call rate recovers

The government securities (G-Sec) remained mixed on alternate bouts of buying and selling while call rate recovered on the overnight call money market here today due to fresh demand from borrowing banks following limited liquidity in the banking system.

The government securities (G-Sec) remained mixed on alternate bouts of buying and selling while call rate recovered on the overnight call money market here today due to fresh demand from borrowing banks following limited liquidity in the banking system.

The 8.19 per cent G-Sec maturing in 2020 improved further to Rs 98.0125 from last weekend’s level of Rs 98.0075,while its yield softened to 8.54 per cent from 8.55 per cent.

The 8.97 per cent G-sec maturing in 2030 firmed up to Rs 100.55 from Rs 100.48,while its yield looked down to 8.91 per cent from 8.92 per cent.

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The 7.99 per cent G-sec maturing in 2017 and the 8.83 per cent G-sec maturing in 2041 also quoted higher at Rs 98.35 and Rs 98.33,respectively.

However,the 9.15 per cent G-Sec maturing in 2024 moved down further to Rs 103.40 from Rs 103.43,while its yield inched up to 8.70 per cent from 8.69 per cent.

The 8.24 per cent G-Sec maturing in 2018 also declined to Rs 98.40 from Rs 98.44,while its yield edged up to 8.59 per cent from 8.58 per cent.

The overnight call money rate finished higher at 8.40 per cent from last Friday’s level of 7.80 per cent. It moved in a range of of 8.52 per cent and 8.20 per cent.

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The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 1,12,370 crore from 51 bids at the one-day repo auction at a fixed rate of 8.00 per cent.

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