Bonds slip, call rates turn higher

MUMBAI: Government bonds (G-Secs) slipped on selling pressure from banks and corporates, while, the overnight call money rates 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 2028 went-down to Rs 96.1425 from Rs 96.1825, while its yield held stable to 7.75 per cent.

The 6.68 per cent government security maturing in 2031 declined to Rs 89.77 from Rs 89.85, while its yield moved up to 7.95 per cent from 7.93 per cent.


The 6.84 per cent government security maturing in 2022 eased to Rs 96.40 from Rs 96.43, while its yield inched up to 7.82 per cent from 7.81 per cent.

The 7.59 per cent government security maturing in 2026, the 6.65 per cent government security maturing in 2020 and the 7.37 per cent government security maturing in 2023 were also quoted lower to Rs 97.52, Rs 98.60 and Rs 97.9250 respectively.

The overnight call money rates ended higher to 6.10 per cent from Tuesday's closing level of 6.05 per cent. It resumed higher at 6.30 per cent and moved in a range of 6.30 per cent and 6.00 per cent.

Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 38.73 billion in 6-bids at the overnight repo operation at a fixed rate of 6.25 per cent as on today, while it sold securities worth Rs 115.70 billion in 44-bids at the overnight reverse repo auction at a fixed rate of 6.00 per cent as on July 17.