Government Security (G-Sec) prices came down a tad on Wednesday due to profit booking after the previous day’s smart rally. Price of the 10-year benchmark G-Sec (carrying a coupon rate of 5.85 per cent) ended about 6 paise down at ₹97.81 over the previous close, with its yield edging up about a basis point to 6.1521 per cent.
The price of the aforementioned G-Sec rose about 26 paise (to close at ₹97.8675), with its yield softening about 4 basis points (to close at 6.1440 per cent) on Tuesday as the government cancelled the last weekly G-Sec auction aggregating ₹20,000 crore.
G-Sec yields rose a shade on Wednesday due to profit booking and uncertainty as to how Thursday’s simultaneous purchase and sale of government securities by the RBI under Open Market Operations (OMO) for an aggregate amount of ₹10,000 crore will play out, said Marzban Irani, CIO-Fixed Income, LIC Mutual Fund.
The price of the 15-year G-Sec (carrying a coupon rate of 6,22 per cent) ended about 6 paise down at ₹95.6625 over the previous close, with its yield edging up about a basis point to 6.7027 per cent.
The price of the aforementioned G-Sec jumped about 34 paise (to close at ₹95.725) on Tuesday, with its yield softening about 4 basis points (to close at 6.6955 per cent).