Government bonds react downwards,call rate steady

The government bonds reacted downwards on heavy selling pressure from banks and corporates,while the overnight call money market remained steady as demand from borrowing banks matched supplies. However,the 3 days call money market eased from last Friday’s close due to lack of demand from borrowing banks amidst ample liquidity in the banking system. The 8.15 […]

Written by Agencies | Mumbai | Published: July 27, 2012 8:41:13 pm

The government bonds reacted downwards on heavy selling pressure from banks and corporates,while the overnight call money market remained steady as demand from borrowing banks matched supplies.

However,the 3 days call money market eased from last Friday’s close due to lack of demand from borrowing banks amidst ample liquidity in the banking system.

The 8.15 per cent government security (G Sec) maturing in 2022 dipped to Rs 100.1925 from 100.23 previously,while its yield edged up to 8.12 per cent from 8.11 per cent.

The 9.15 per cent government security maturing in 2024 fell to Rs 106.43 from 106.4650,while its yield held steady at 8.30 per cent.

The 8.19 per cent government security maturing in 2020 slid to Rs 100.17 from Rs 100.24,while its yield inched up to 8.16 per cent from 8.15 per cent.

The 8.33 per cent government security maturing in 2026,8.07 per cent government security maturing in 2017 and 8.79 per cent government security maturing in 2021 were also quoted lower at Rs 100.80,Rs 100.0850 and Rs 103.36,respectively.

The overnight call money rate finished stable at 8.00 per cent. It moved in a range of 8.00 per cent and 7.50 per cent. While,3-day call money rate ended lower at 7.90 per cent from last Friday’s 7.95 per cent. It moved in a range of 8.05 per cent and 7.25 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 17,860 crore from 15 bids at the three-days repo auction at a fixed rate of 8.00 per cent,while sold securities worth Rs 230 crore from 7 bids at the three-days reverse repo auction at a fixed rate of 7 per cent.

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