Bonds decline, call rates end higher

MUMBAI: Government bonds ( G-Secs) declined on selling pressure from banks and corporates, while the overnight call money rate finished higher following sustained demand from borrowing banks amid adequate liquidity in the banking system.

The 7.88 per cent government security maturing in 2030 slipped to Rs 99.6450 from Rs 99.90 previously, while its yield edged up to 7.92 per cent from 7.89 per cent.

The 7.72 per cent government security maturing in 2025 went down to Rs 99.96 from Rs 100.0650, while its yield rose to 7.72 per cent from 7.71 per cent.

The 7.68 per cent government security maturing in 2023 fell to Rs 99.83 from Rs 99.96, while its yield moved up to 7.71 per cent from 7.69 per cent.

The 8.27 per cent government security maturing in 2020, the 7.35 per cent government security maturing in 2024 and the 8.12 per cent government security maturing in 2020 were also quoted lower to Rs 102.1125, Rs 97.64 and Rs 101.50, respectively.

The overnight call money rates finished higher at 6.50 per cent from yesterday's closing level of 6.00 per cent. It moved in a range of 7.00 per cent and 6.00 per cent.

The 3-days call money quoted at 6.25 per cent.

Meanwhile, the Reserve Bank of India ( RBI), under the Liquidity Adjustment Facility ( LAF), purchased securities worth Rs 171.43 billion in 37-bids at the 3-days repo auction at a fixed rate of 6.75 per cent as on today.

It sold securities worth Rs 33.21 billion from 29-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on December 17.