Government bonds decline on selling pressure, call rate edges up

MUMBAI: The government bonds declined due to selling pressure from banks and corporates, while call rates edged up to close at 7.60 per cent at the overnight call money market on Friday owing to fresh buying support from borrowing banks.

The 7.80 per cent government security maturing in 2021 dropped to Rs 96.60 from previous close of Rs 96.87, while its yield moved up to 8.31 per cent from 8.27 per cent.

The 8.08 per cent government security maturing in 2022 slipped to Rs 97.52 from Rs 97.85, while its yield rose to 8.43 per cent from 8.38 per cent.

The 8.13 per cent government security maturing in 2022 fell to Rs 97.86 from Rs 98.17, while its yield firmed up to 8.43 per cent from 8.38 per cent.

The 7.83 per cent government security maturing in 2018, the 7.59 per cent government security maturing in 2016 and the 7.49 per cent government security maturing in 2017 were also quoted lower at Rs 97.46, Rs 97.24 and Rs 96.25, respectively.

The overnight call money rate closed higher at 7.60 per cent from 7.55 per cent previously while 3-days call money rate finished at 7.70 per cent after moving in a range of 7.75 per cent and 7.45 per cent.

The Reserve Bank of India ( RBI) under the Liquidity Adjustment Facility ( LAF) purchased securities worth Rs 45,645 crore from 33 bids at the three-days repo auction at a fixed rate of 7.50 per cent.