Bond firms up on good demand, call rate marginally down

MUMBAI: The government bond prices firmed up on good buying support from banks and corporates, while call rate ended slightly lower at the overnight call money market here today due to lack of demand from borrowing banks.

The 7.80 per cent government security maturing in 2021 hardened to Rs 93.08 from Rs 92.82 yesterday, while its yield declined to 8.90 per cent from 8.94 per cent.

The 8.13 per cent government security maturing in 2022 rose to Rs 94.38 from Rs 94.30, while its yield softened to 8.95 per cent from 8.96 per cent.

The 7.83 per cent government security maturing in 2018 firmed up to Rs 95.35 from Rs 95.18, while its yield moved down to 8.79 per cent from 8.83 per cent.

The 8.08 per cent government security maturing in 2022, the 7.99 per cent government security maturing in 2017, the 7.59 per cent government security maturing in 2016 and the 8.28 per cent government security maturing in 2027 were also quoted higher at Rs 94.20, Rs 96.22, Rs 95.54 and Rs 94.20, respectively.

The overnight call money rate ended slightly lower at 8.50 per cent from yesterday's closing level of 8.55. It moved in a range of 8.60 per cent and 8.25 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility ( LAF) purchased securities worth Rs 41,705 crore from 14 bids at the one-day repo auction at a fixed rate of 8.50 per cent.