Bonds firm up on sustained demand, call rate ends higher

MUMBAI: The Government securities (G-Sec) rose further on sustained buying support from banks and corporates, while the call money rates ended higher at the overnight call money market here today due to fresh demand from borrowing banks.

The 8.33 per cent G-Sec maturing in 2026 shot up further to Rs 103.6600 from yesterday's level of Rs 103.53, while its yield inched down to 7.88 per cent from 7.89 per cent.

The 8.20 per cent G-Sec maturing in 2025 moved up to Rs 102.6150 from Rs 102.5150, while its yield moved down to 7.87 per cent from 7.88 per cent.

The 8.15 per cent G-Sec maturing in 2022 also climbed to Rs 102.0900 from Rs 102.04, while its yield softened to 7.82 per cent from 7.83 per cent.

The 8.07 per cent G-Sec maturing in 2017, the 8.97 per cent maturing in 2030 and the 7.83 per cent maturing in 2018 also quoted higher at Rs 101.3525, Rs 108.6250 and Rs 100.4250, respectively.

The Overnight call money rate finished higher at 7.65 per cent from previous close of 7.55 per cent. It moved in a range of 7.70 per cent and 7.30 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 580.05 billion in 23 bids at the one-day repo auction at a fixed rate of 7.50 per cent, while it sold securities worth Rs 0.30 billion in two bids at the 1-day reverse repo auction at a fixed rate of 6.50 per cent in the evening auction.