1. Bonds slip, call rates turn lower

Bonds slip, call rates turn lower

Government bonds (G-Secs) slipped on selling pressure from banks and corporates and the overnight call money rates also turned lower due to lack of demand from borrowing banks amid ample liquidity in the banking system.

By: | Published: May 16, 2017 6:17 PM
The 6.79 per cent government security maturing in 2029 declined to Rs 99.22 from Rs 99.4450 previously, while its yield rose to 6.88 per cent from 6.86 per cent.

Government bonds (G-Secs) slipped on selling pressure from banks and corporates and the overnight call money rates also turned lower due to lack of demand from borrowing banks amid ample liquidity in the banking system. The 6.79 per cent government security maturing in 2029 declined to Rs 99.22 from Rs 99.4450 previously, while its yield rose to 6.88 per cent from 6.86 per cent.

The 6.97 per cent government security maturing in 2026 fell to Rs 100.8550 from Rs 101.1000, while its yield gained to 6.84 per cent from 6.81 per cent. The 6.79 per cent government security maturing in 2027 eased to Rs 100.8150 from Rs 101.1250, while its yield rose to 6.68 per cent from 6.63 per cent.

The 7.16 per cent government security maturing in 2023, the 7.59 per cent government security maturing in 2026 and the 7.61 per cent government security maturing in 2030 were also quoted lower by Rs 100.56, Rs 103.90 and Rs 103.35 respectively.

The overnight call money rates finished lower at 6.10 per cent from Monday’s level of 6.15 per cent. It resumed higher at 6.30 and moved in a range of 6.35 and 5.95 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 25.23 billion in 8 bids at the overnight repo operation at a fixed rate of 6.25 per cent as on today. While, its sold securities worth Rs 81.29 billion from 35-bids at the overnight reverse repo auction at a fixed rate of 6.00 per cent as on May 15.

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