Bonds surge, call rates finish lower

MUMBAI: Government bonds ( G-Secs) surged on rising buying support from banks and corporates, while the overnight call money rates turned lower due to subdued demand from borrowing banks amid adequate liquidity in the banking system.

The 7.72 per cent government security maturing in 2025 gained to Rs 100.0650 from Rs 99.8950 previously, while its yield moved down to 7.71 from 7.73 per cent.

The 7.88 per cent government security maturing in 2030 climbed to Rs 99.90 from Rs 99.81, while its yield inched down to 7.89 per cent from 7.90 per cent.

The 7.68 per cent government security maturing in 2023 went-up to Rs 99.96 from Rs 99.84, while its yield edged down to 7.69 per cent from 7.71 per cent.

The 8.27 per cent government security maturing in 2020, the 7.35 per cent government security maturing in 2024 and the 8.40 per cent government security maturing in 2024 were also quoted higher to Rs 102.17, Rs 97.74 and Rs 103.2625 respectively.

The overnight call money rates finished lower at 6.00 per cent from Wednesday's closing level of 7.10 per cent. It resumed lower at 7.05 per cent and moved in a range of 7.25 per cent and 6.00 per cent.

Meanwhile, the Reserve Bank of India ( RBI), under the Liquidity Adjustment Facility ( LAF), purchased securities worth Rs 202.17 billion in 48-bids at the overnight repo auction at a fixed rate of 6.75 per cent as on today.

It sold securities worth Rs 22.31 billion from 26-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on December 16.