1. Bonds firm up, call rates finish higher

Bonds firm up, call rates finish higher

Government bonds (G-Secs) firmed up on rising buying support from banks and corporates and the overnight call money rates ended higher due to good demand from borrowing banks amid tight liquidity in the banking system.

By: | Mumbai | Published: June 19, 2017 7:35 PM
Government bonds, Bonds firm up, Liquidity Adjustment Facility, banking system, Market The 6.79 per cent government security maturing in 2027 rose to Rs 102.34 from Rs 102.16, while its yield softened to 6.47 per cent from 6.49 per cent.(Reuters)

Government bonds (G-Secs) firmed up on rising buying support from banks and corporates and the overnight call money rates ended higher due to good demand from borrowing banks amid tight liquidity in the banking system. The 6.79 per cent government security maturing in 2029 climbed to Rs 100.5575 from Rs 100.39, while its yield edged down to 6.72 per cent from 6.74 per cent. The 6.79 per cent government security maturing in 2027 rose to Rs 102.34 from Rs 102.16, while its yield softened to 6.47 per cent from 6.49 per cent.

The 6.97 per cent government security maturing in 2026 moved up to Rs 102.31 from Rs 102.1350, while its yield down to 6.63 per cent from 6.65 per cent. The 7.35 per cent government security maturing in 2024, the 7.61 per cent government security maturing in 2030 and the 6.84 per cent government security maturing in 2022 were also quoted higher to Rs 103.0950, Rs 106.56 and Rs 101.18 respectively.

The overnight call money rates finished higher to 6.10 per cent from last Friday’s level of 6.00 per cent. It resumed higher at 6.25 per cent and moving in a range of 6.25 per cent and 5.90 per cent. Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 23.65 billion in 5-bids at the overnight repo operations at a fixed rate of 6.25 per cent as on today, while its sold securities worth Rs 84.02 billion in 33-bids at the 2-day reverse repo auction at a fixed rate of 6.00 per cent as on June 17.

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