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This is an archive article published on September 7, 2012

Government bonds reacts downwards,call rate ends lower

The government bonds reacted downwards on selling pressure from banks and corporates,while call rates dropped at the overnight as well as three-days call money market here today due to lack of demand from borrowing banks.

The government bonds reacted downwards on selling pressure from banks and corporates,while call rates dropped at the overnight as well as three-days call money market here today due to lack of demand from borrowing banks.

The 8.33 per cent government securities (G-Sec) maturing in 2026 dropped to Rs 99.72 from 100.0450 previously,while its yield rose to 8.36 per cent from 8.32 per cent.

The 8.15 per cent government security maturing in 2022 fell to Rs 99.65 from 99.92,while its yield gained 8.20 per cent from 8.16 per cent.

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The 8.97 per cent government security maturing in 2030 slid to Rs 103.6825 from Rs 104.05 while its yield moved up to 8.56 per cent from 8.53 per cent.

The 8.19 per cent government security maturing in 2020,and 8.07 per cent government security maturing in 2017 and 9.15 per cent government security maturing in 2024 also quoted lower at Rs 99.4150,Rs 99.44 and Rs 105.71,respectively.

The call money rate finished lower at 7.60 per cent from yesterday’s 8.00 per cent,it moved in a range of 7.60 per cent and 7.25 per cent and 3-days call money also declined 7.50 per cent from last Friday’s 7.95 per cent,it moved in a range of 7.85 per cent and 7.25 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 128.75 billion from 9 bids at the three-days repo auction at a fixed rate of 8 per cent.

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