Govt bonds surge, call rates turn lower

Government bonds (G-Secs) surged following rising demand from corporates and banks, while, the overnight call money rates turned lower due to lack of demand from borrowing banks amid comfortable liquidity in the banking sytem.

The 7.17 per cent government security maturing in 2028 firmed up to Rs 95.40 from Rs 95.31, while, its yield edged down to 7.86 per cent from 7.88 per cent.

The 6.68 per cent government security maturing in 2031 rose to Rs 89.05 from Rs 88.95, while, its yield softened to 8.04 per cent from 8.05 per cent.


The 6.84 per cent government security maturing in 2022 gained to Rs 96.02 from Rs 95.95, while, its yield eased to 7.91 per cent from 7.93 per cent.

The 8.27 per cent government security maturing in 2020, the 7.16 per cent government security maturing in 2023 and the 7.59 per cent government security maturing in 2026 were also quoted higher to Rs 101.40, Rs 96.66 and Rs 97.31 respectively.

The overnight call money rates ended lower to 6.20 per cent from Monday's level of 6.25 per cent. It resumed higher to 6.30 per cent and moved in a range of 6.35 per cent and 6.00 per cent.

Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 122.01 billion in 24-bids at the overnight repo operations at a fixed rate of 6.25 per cent as on today, while, its sold securities worth Rs 65.53 billion in 41-bids at the overnight reverse repo auction at a fixed rate of 6.00 per cent as on June 18. PTI BPD BPD

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