Bonds recover, call rates turn higher

Mumbai: Government bonds (G-Secs) recovered following renewed demand from corporates and banks. The overnight call money rates also turned higher due to good demand from borrowing banks amid tight liquidity in the banking system.

The 7.17 per cent 10-year benchmark bond maturing in 2018 went-up to Rs 95.23 from Rs 94.87, while its yield moved down to 7.89 per cent from 7.94 per cent.

The 6.84 per cent government security maturing in 2022 rose to Rs 95.9975 from Rs 95.80, while its yield edged down to 7.91 per cent from 7.97 per cent.


The 6.68 per cent government security maturing in 2031 gained to Rs 88.82 from Rs 88.46, while its yield eased to 8.07 per cent from 8.12 per cent.

The 6.79 per cent government security maturing in 2027, the 7.80 per cent government security maturing in 2021 and the 8.15 per cent government security maturing in 2022 were also quoted higher at Rs 92.40, Rs 100.18 and Rs 100.70 respectively.

The overnight call money rates ended higher at 6.10 per cent from Thursday's level of 6.00 per cent. It resumed higher at 6.25 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 38.41 billion in 5-bids at the 3-days repo operations at a fixed rate of 6.25 per cent as on today, while, its sold securities worth Rs 192.74 billion in 55-bids at the overnight reverse repo auction at a fixed rate of 6.00 per cent as on Jun 14.