Bonds, call rates rebound on fresh demand from banks

MUMBAI: Government bonds (G-Secs) rebounded following fresh demand from corporates and banks, and the overnight call money rates turned higher due to good demand from borrowing banks amid tight liquidity in the banking system.

The 7.59 per cent 10-year benchmark bond maturing in 2026 rose to Rs 108.5275 from Rs 108.30, while its yield edged down to 6.34 per cent from 6.37 per cent.

The 7.61 per cent government security maturing in 2030 rose to Rs 110.36 from Rs 110.20, while its yield eased to 6.44 per cent from 6.46 per cent.

The 6.97 per cent government security maturing in 2026 moved up to Rs 105.44 from Rs 105.25, while its yield softened to 6.22 per cent from 6.24 per cent.

The 7.59 per cent government security maturing in 2029, the 7.88 per cent government security maturing in 2030 and the 7.68 per cent government security maturing in 2023 also quoted higher to Rs 109.38, Rs 112.08 and Rs 107.90, respectively.

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

Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 28.16 billion in 7-bids at the overnight repo auction at a fixed rate of 6.25 per cent today morning, while it sold securities worth Rs 109.09 billion in 24-bids at the 2-days reverse repo auction at a fixed rate of 5.75 per cent as on December 3.