Bonds, call rates rebound amid tight liquidity conditions

MUMBAI: Government bonds (G-Secs) rebounded due to renewed demand from corporates and banks, and the interbank call rates also regained owing to fresh demand from borrowing banks amid tight liquidity conditions in the banking system.

The 6.97 per cent government security maturing in 2026 gained to Rs 103.14 as compared to Rs 101.7475 previously, while its yield dipped to 6.53 per cent from 6.72 per cent.

The 7.59 per cent government security maturing in 2026 rose to Rs 106.56 from Rs 105.11, while its yield went down to 6.62 per cent from 6.83 per cent.


The 7.61 per cent government security maturing in 2030 climbed to Rs 107.35 from Rs 105.93, while, its yield moved down to 6.77 per cent from 6.93 per cent.

The 7.59 per cent government security maturing in 2029, the 7.68 per cent government security maturing in 2023 and the 7.88 per cent government security maturing in 2030 were also quoted higher at Rs 106.60, Rs 106.51 and Rs 109.09 respectively.

The overnight call money rates finished higher at 6.20 per cent from Last friday's level 6.15 per cent. It resumed lower at 6.00 per cent and moved in a range of 6.25 per cent and 5.95 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 31.48 billion in 5-bids at the overnight repo auction at a fixed rate of 6.25 per cent as on today, while its sold securities worth Rs 364.11 billion from 49-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on November 14.