Bonds rise on fresh buying, call rate ends lower

The Government securities (G-Sec) rose on fresh demand from banks and corporates, while the call money rates ended lower at the overnight call money market here today due to lack of demand from borrowing banks amidst ample liquidity in banking system.

The 8.15 per cent G-Sec maturing in 2022 moved up to Rs 101.6525 from Rs 101.5850 yesterday, while its yield inched down to 7.90 per cent from 7.91 per cent.

The 8.33 per cent G-Sec maturing in 2026 firmed up to Rs 102.9550 from Rs 102.9050, while its yield held steady at 7.97 per cent.

The 8.20 per cent G-Sec maturing in 2025 also gained to Rs 101.93 from Rs 101.85, while its yield softened to 7.95

per cent from 7.96 per cent.

The 8.07 per cent G-Sec maturing in 2017-JLY, the 8.97 per cent maturing in 2030 and the 8.19 per cent maturing in 2020 were also quoted higher at Rs 100.80, Rs 108.71 and Rs 101.2850 respectively.

The Overnight call money rate finished lower at 7.95 per cent from Tuesday's closing of 8.10 per cent. It moved in a range of 8.15 per cent and 7.90 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 825.25 billion in 28 bids at the one-day repo auction at a fixed rate of 8.00 per cent, while sold securities worth Rs 0.50 billion in one-bid at the one-day reverse repo auction at a fixed rate of 7 per cent in the evening auction.

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