Bonds recover, call rates finish lower

MUMBAI: Government bonds ( G-Secs) recoverd on renewed buying support from banks and corporates while the overnight call money rates ended lower due to subdued demand from borrowing banks amid ample liquidity in the banking system.

The 7.72 per cent government security maturing in 2025 rose to Rs 99.62 from Rs 99.50 previously, while its yield moved down to 7.75 per cent from 7.79 per cent.

The 7.88 per cent government security maturing in 2030 gained to Rs 99.5950 from Rs 99.43, while its yield edged down to 7.93 per cent from 7.95 per cent.

The 8.27 per cent government security maturing in 2020 went up to Rs 101.9975 from Rs 101.87, while its yield down to 7.74 per cent from 7.77 per cent.

The 7.68 per cent government security maturing in 2023, the 6.05 per cent government security maturing in 2019 and the 7.59 per cent government security maturing in 2029 quoted higher at Rs 99.71, Rs 95.64 and Rs 98.32 respectively.

The overnight call money rates ended lower at 6.02 per cent from yesterday's close of 6.40 per cent. It resumed higher at 6.75 per cent and moved in a range of 6.90 per cent and 6.00 per cent.

Meanwhile, the Reserve Bank of India ( RBI), under the Liquidity Adjustment Facility ( LAF), purchased securities worth Rs 147.73 billion in 30 bids at overnight repo auction at a fixed rate of 6.75 per cent as on today, while it sold securities worth Rs 40.73 billion from 25 bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on December 8.