Government bonds rise, call money rates end lower

MUMBAI: Government bonds (G-Secs) rose on good demand from banks and corporates, while the overnight call money rate finished lower following subdued demand from borrowing banks amid adequate liquidity in the banking system.

The 7.72 per cent government security maturing in 2025 rose to Rs 99.54 from Rs 99.75 previously, while its yield slipped to 7.75 per cent from 7.76 per cent.

The 7.88 per cent government security maturing in 2030 went up to Rs 99.54 from Rs 99.42, while its yield edged down to 7.93 per cent from 7.95 per cent.

The 7.68 per cent government security maturing in 2023 climbed to Rs 99.80 from Rs 99.63, while its yield eased to 7.71 per cent from 7.74 per cent.

The 8.27 per cent government security maturing in 2020, the 7.59 per cent government security maturing in 2029 and the 11.60 per cent government security maturing in 2020 were also quoted up at Rs 102.21, Rs 98.30 and Rs 115.58, respectively.

The overnight call money rates finished lower at 5.20 per cent from yesterday's closing level of 6.00 per cent. It moved in a range of 7.10 per cent and 5.20 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility ( LAF), purchased securities worth Rs 199.62 billion in 47-bids at the 5-days repo auction at a fixed rate of 6.75 per cent as on today.

It sold securities worth Rs 86.75 billion from 34-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on December 22.