Bonds end mixed, call rate recovers

MUMBAI: The government securities (G-Sec) continued to rule mixed on alternate bouts of buying and selling while call rate recovered at the overnight call money market here today on lack of liquidity in the banking system amid fresh demand from borrowing banks.

The 8.79 per cent G-Sec maturing in 2021 declined further to Rs 103.2250 from Rs 103.32 previously, while its yield moved up to 8.30 per cent from 8.28 per cent.

The 9.15 per cent G-sec maturing in 2024 moved down to Rs 106.24 from Rs 106.39, while its yield looked up to 8.34 per cent from 8.32 per cent.

The 8.19 per cent G-sec maturing in 2020 and the 7.83 per cent G-sec maturing in 2018 also quoted lower at Rs 99.17 and Rs 97.45, respectively.

However, the 7.40 per cent G-Sec maturing in 2012 firmed up to Rs 99.7425 from Rs 99.7175.

The 8.83 per cent G-sec maturing in 2041, the 6.85 per cent G-sec maturing in 2012 and the 8.28 per cent G-sec maturing in 2027 also ended higher at Rs 102.30, Rs 99.8325 and 97.9150, respectively.

The overnight call money rate finished higher at 8.85 per cent from last Friday's close of 8.30 per cent. It moved in a range of 8.85 per cent and 8.75 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 1,31,400 crore from 52 bids at the one-day repo auction at a fixed rate of 8.50 per cent while sold securities worth Rs 1,505 crore from two bids at the one-day reverse repo auction at a fixed rate of 7.50 per cent.