Feb 23, 2018 07:10 PM IST | Source: PTI

Government bonds rebound, call rates turn lower

The 7.17 percent government security maturing in 2028 went-up to Rs 96.5875 from Rs 96.06, while, its yield moved down to 7.67 percent from 7.75 percent.

Government bonds (G-Secs) rebounded following renewed 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 system.

The 7.17 percent government security maturing in 2028 went-up to Rs 96.5875 from Rs 96.06, while, its yield moved down to 7.67 percent from 7.75 percent.

The 6.68 percent government security maturing in 2031 climbed to Rs 89.6450 from Rs 89.15, while, its yield edged down to 7.94 percent from 8.00 percent.

The 6.79 percent government security maturing in 2027 rose to Rs 93.10 from Rs 92.72, while, its yield eased to 7.85 percent from 7.91 percent.

The 6.84 percent government security maturing in 2022, the 7.72 percent government security maturing in 2025 and the 8.20 percent government security maturing in 2022 were also quoted higher to Rs 97.5750, Rs 100.00 and Rs 102.67 respectively.

The overnight call money rates finished lower to 5.85 percent from Thursday's closing level of 5.95 percent. It resumed higher to 6.05 percent and moved in a range of 6.05 percent and 5.70 percent. Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 36.05 billion in 5-bids at the 3-days repo operation at a fixed rate of 6.00 percent as on today, while its sold securities worth Rs 98.65 billion in 40-bids at the overnight reverse repo auction at a fixed rate of 5.75 percent as on February 22.