Bonds remain weak,call rate improves further

The 7.99 per cent government security maturing in 2017 too dropped to Rs 99.93 from Rs 100.11.

Government securities remained weak on persistent selling by banks and corporates,while call rate settled further higher on the overnight call money market on lack of liquidity in the banking system after rise in key rates by the apex bank last Thursday to contain inflation.

The 8.13 per cent government security maturing in 2022 dipped to Rs 100.09 from Rs 100.27 last Friday,while its yield improved further to 8.12 per cent from 8.19 per cent.

The 8.08 per cent government security maturing in 2022 also tumbled to Rs 99.65 from Rs 99.84,while its yield firmed up to 8.13 per cent from 8.10 per cent last weekend.

The 7.99 per cent government security maturing in 2017 too dropped to Rs 99.93 from Rs 100.11,while its yield rose to Rs 8.00 peer cent from 7.96 per cent.

The 7.80 per cent government security maturing in 2020,the 7.49 per cent government security maturing in 2017 and the 8.26 per cent government security maturing in 2027 also ended further lower at Rs 98.6150,Rs 97.65 and Rs 99.05,respectively.

After moving in a range of 7.75 per cent and 7.55 per cent,the call money rate finished strong at 7.70 per cent from last weekend’s closing level of 7.55 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 55,400 crore from 38 bids at the One-day repo auction at a fixed rate of 6.75 per cent.