Markets

Govt bonds weaken, call rates turn higher

Mumbai: Government bonds (G-Secs) weakened on selling pressure from banks and corporates, while, the overnight call money rates turned higher due to good demand from borrowing banks amid tight liquidity in the banking system.

The 7.17 per cent 10-year benchmark bond maturing in 2028 dropped to Rs 93.86 from Rs 94.14 previously, while its yield edged up to 8.12 per cent from 8.08 per cent.

The 6.68 per cent government security maturing in 2031 went-down to Rs 87.9225 from Rs 88.05, while its yield eased to 8.21 per cent from 8.19 per cent.

The 6.84 per cent government security maturing in 2022 fell to Rs 95.41 from Rs 95.5750, while its yield moved up to 8.14 per cent from 8.09 per cent.

The 7.59 per cent government security maturing in 2026, the 8.20 per cent government security maturing in 2022 and the 6.65 per cent government security maturing in 2020 were also quoted lower to Rs 96.4825, Rs 100.21 and Rs 98.13 respectively.

The overnight call money rates ended higher to 6.40 per cent from last Friday's level of 6.30 per cent. It resumed higher at 6.65 per cent and moved in a range of 6.75 and 6.30 per cent.

Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 106.51 billion in 15-bids at the overnight repo operation at a fixed rate of 6.50 per cent as on today, while it sold securities worth Rs 151.68 billion in 44-bids at the 3-days reverse repo auction at a fixed rate of 6.25 per cent as on September 21.

Original Article

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