Government bonds firm up on good demand,call rate drops

The 8.19 per cent G-Sec maturing in 2020 rose to Rs 100.02 from 99.93,while its yield moved down to 8.19 per cent from 8.20 per cent.

The 8.33 per cent G-Sec maturing in 2026 also surged to Rs 100.50 from 100.3875,while its yield edged down to 8.27 per cent from 8.28 per cent.

The 8.15 per cent G-Sec maturing in 2022,the 8.79 per cent maturing in 2021 and the 8.07 per cent maturing in 2017 also quoted higher at Rs 100.00,Rs 103.06 and Rs 100.00 respectively.

The Overnight call money rate finished lower at 8.10 per cent from last Friday’s close of 8.40 per cent. It moved in a range of 8.25 per cent and 8.00 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 39,615 crore in 27 bids at the one-day repo auction at a fixed rate of 8.00 per cent,while sold securities worth Rs 50 crore from 1 bids at the one-day reverse repo auction at a fixed rate of 7 per cent.