Govt bonds recover, call rate end lower

MUMBAI: Government bonds (G-Secs) recovered following renewed demand from corporates and banks, while the overnight call money ended lower due to lack of demand from borrowing banks amid comfortable liquidity situation in the banking system.

The 7.59 per cent 10-year benchmark bond maturing in 2026 surged to Rs 108.37 from Rs 107.93, while its yield moved down to 6.36 per cent from 6.43 per cent.

The 7.61 per cent government security maturing in 2030 rose to Rs 110.2150 from Rs 109.63, while its yield eased to 6.46 per cent from 6.52 per cent.

The 6.97 per cent government security maturing in 2026 climbed to Rs 105.24 from Rs 104.69, while its yield softened to 6.24 per cent from 6.32 per cent.

The 7.59 per cent government security maturing in 2029, the 7.68 per cent government security maturing in 2023 and the 7.88 per cent government security maturing in 2030 were also quoted higher to Rs 109.31, Rs 107.80 and Rs 112.07 respectively.

The overnight call money rates finished lower to 5.90 per cent from Tuesday's level 6.50 per cent. It resumed steady at 6.50 per cent and moving in a range of 6.55 per cent and 5.90 per cent.

Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 51.08 billion in 18-bids at the overnight repo auction at a fixed rate of 6.25 per cent today morning, while it sold securities worth Rs 29.47 billion in 14-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on November 29.