Bond declines on fresh selling pressure, call rate ends stable

MUMBAI: The government bond prices declined due to fresh selling pressure from banks and corporates, while call money rates remained steady on an even demand and supply.

The 8.08 per cent government security maturing in 2022 dropped to Rs 98.77 from Rs 99.06 yesterday, while its yield moved up to 8.25 per cent from 8.21 per cent.

The 7.99 per cent government security maturing in 2017 slipped to Rs 99.05 from Rs 99.28, while its yield rose to 8.18 per cent from 8.13 per cent.

The 8.13 per cent government security maturing in 2022 fell to Rs 99.42 from Rs 99.65, while its yield looked up to 8.21 per cent from 8.17 per cent.

The 7.17 per cent government security maturing in 2015, the 7.80 per cent government security maturing in 2020, the 8.26 per cent government security maturing in 2027 and the 7.49 per cent government security maturing in 2017 also quoted lower at 96.49, Rs 97.65, Rs 97.80 and Rs 96.90, respectively.

The overnight call money rate settled the day remained unchanged at its overnight level of 6.50 per cent. It moved in a range of 6.50 per cent and 6.75 per cent.

The Reserve Bank of India under the Liquidity Adjustment Facility purchased securities worth Rs 81,485 crore from 43 bids at the three-days repo auction at a fixed rate of 6.25 per cent, while sold securities worth Rs 500 crore from one bid at the three-days reverse repo auction at a fixed rate of 5.25 per cent.