Bonds slip, call rates remain higher

MUMBAI: Government bonds (G-Secs) slipped on selling pressure from banks and corporates, while the overnight call money rate remained higher owing to sustained demand from borrowing banks amid tight liquidity in the banking system.

The 7.88 per cent government security maturing in 2030 fell to Rs 99.34 from Rs 99.5175 previously, while its yield moved up to 7.96 per cent from 7.94 per cent.

The 7.72 per cent government security maturing in 2025 declined to Rs 99.74 from Rs 99.80, while its yield edged-up to 7.76 per cent from 7.75 per cent.

The 7.68 per cent government security maturing in 2023 also eased to Rs 99.70 from Rs 99.77, while its yield inched-up to 7.73 per cent from 7.72 per cent.

The 8.27 percent government security maturing in 2020, the 7.59 per cent government security maturing in 2029 and the 8.40 per cent government security maturing in 2024 were also quoted lower at Rs 102.16, Rs 97.98 and Rs 103.1575, respectively.

The overnight call money rates ended higher at 7.00 per cent from Wednesday's level of 6.70 per cent. It moved in a range of 7.40 per cent and 6.50 per cent.

Meanwhile, Reserve Bank, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 169.58 billion in 42-bids at the one-day repo auction at a fixed rate of 6.75 per cent as on today.

It sold securities worth Rs 98.01 billion from 39 bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on Dec 30 evening.