Government bond prices showed a mixed trend due to alternate bouts of buying and selling while call rates ended higher at 3.30 % on the overnight call money market on Wednesday owing to fresh demand from borrowing banks.
The 6.35 % government security maturing in 2020 moved down to Rs 90.13 from Rs 90.22, while its yield looked up to 7.8% from 7.79%.
The call money rate ended higher at 3.3% from Tuesday?s closing level of 3.25% after moving in a range of 3.35% and 3.2%.
The rupee on Wednesday lost 8 paise to close at more than one week low of 46.32/33 against the US currency on dollar buying by importers amid erratic movements in stock markets.
The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) mopped up Rs 67,520 crore from 34 bids at the one day reverse repo auction at the rate of 3.25%.
Overnight money rates remained steady, helped by surplus cash with banks, and traders said liquidity conditions would be comfortable at least until mid-March.
The one-day inter-bank rate ended at 3.25/30%, steady at its previous close.
Banks parked Rs 67,520 crore with the central bank at its reverse repo auction, showing the liquidity surplus.
Forex dealers said the drop in the rupee value was mainly due to dollar buying by importers, mainly oil refiners, to meet their month-end needs.