Bond prices recover moderately

MUMBAI: Select government bond prices recovered due to fresh demand from banks and corporates, while call rates eased further to 0.10 per cent due to ample liquidity in the banking system on the overnight call money market here today.

Government bond prices moved up by on an average of 15 to 20 paise.

The 7.49 per cent government security maturing in 2017 recovered to Rs 97.35 from Rs 97.15 previously while its yield eased to 7.88 per cent from 7.91 per cent.

The 8.07 per cent government security maturing in 2017 also moved up to 101.20 from Rs 101.00 while its yield eased to 7.89 per cent from 7.92 per cent.

The 7.99 per cent government security maturing in 2017 was quoted higher at Rs 100.65 as compared to Rs 100.50, while yield slipped to 7.89 per cent from 7.92 per cent.

The 8.33 per cent government security maturing in 2036 was also quoted higher at Rs 99.40 as against Rs 99.24 previously.

The call rate ended lower at 0.10 per cent as against 0.15 per cent after moving in a range of 0.10 per cent and 0.15 per cent.

The Reserve Bank of India, under the Liquidity Adjustment Facility (LAF) received 41 bids of Rs 74,040 crore at the one day reserve repo auction at the rate of 6.00 per cent in the morning but the central bank accepted only Rs 1,991 crore.

The RBI also accepted 33 bids of Rs 986 cr out of Rs 49,030 crore received at the one day reverse repo auction at the rate of 6.00 per cent in the evening under second LAF.