Bonds remain firm on sustained demand, call rate ends decline

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SummaryThe Government securities (G-Sec) continued to rule firm on persistent buying support from banks and corporates, while the call money rates reacted downwards at the overnight call money market here today owing to lack of demand from borrowing banks amid ample liquidity in banking system.

The Government securities (G-Sec) continued to rule firm on persistent buying support from banks and corporates, while the call money rates reacted downwards at the overnight call money market here today owing to lack of demand from borrowing banks amid ample liquidity in banking system.

The 8.33 per cent G-Sec maturing in 2026 hardened further to Rs 101.94 from yesterday's level of Rs 101.3750, while its yield remained weak to 8.09 per cent from 8.16 per cent.

The 8.15 per cent G-Sec maturing in 2022 shot up to Rs 101.01 from Rs 100.6450, while its yield declined to 7.99 per cent from 8.05 per cent.

The 8.20 per cent G-Sec maturing in 2025 also firmed up sharply to Rs 100.9450 from Rs 100.3975, while its yield dropped to 8.08 per cent from 8.15 per cent.

The 8.97 per cent G-Sec maturing in 2030, the 9.15 per cent maturing in 2024 and the 8.19 per cent maturing in 2020 also quoted sharply higher at Rs 107.4775, Rs 107.3150 and Rs 100.75 respectively.

The Overnight call money rate finished lower at 8.00 per cent from Monday's close of 9.00 per cent. It moved in a range of 8.25 per cent and 7.90 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 1,502.30 billion in 48 bids at the one-day repo auction at a fixed rate of 8.00 per cent, while sold securities worth Rs 24.30 billion in three-bids at the 1-day reverse repo auction at a fixed rate of 7 per cent in the evening auction.

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