Bonds gain, call rates turn lower

MUMBAI: Government bonds (G-Secs) gained following good 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 climbed to Rs 97.77 from Rs 97.74 previously, while, its yield softened to 7.49 per cent from 7.50 per cent.

The 6.68 per cent government security maturing in 2031 went-up to Rs 90.9975 from Rs 90.9450, while, its yield inched down to 7.76 per cent from 7.77 per cent.

The 6.84 per cent government security maturing in 2022 rose to Rs 98.07 from Rs 98.01, while, its yield edged down to 7.32 per cent from 7.33 per cent.

The 7.68 per cent government security maturing in 2023, the 7.72 per cent government security maturing in 2025 and the 8.27 per cent government security maturing in 2020 were also quoted higher to Rs 100.90, Rs 100.66 and Rs 102.97 respectively.

The overnight call money rates ended lower to 5.80 per cent from Monday's closing level of 6.20 per cent. It resumed lower to 6.00 per cent and moved in a range of 6.15 per cent and 5.80 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 219.29 billion in 38-bids at the overnight repo opertion at a fixed rate of 6.00 per cent as on today, while its sold securities worth Rs 81.43 billion from 21-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on February 13.