Bonds drop further, call rates remain stable

Mumbai: The government securities (G-Sec) dropped further on sustained selling pressure from banks and corporates, while, the call money rates remained stable at the overnight call money market in Mumbai today as demand from borrowing banks matched the supply.

The 8.83 percent government security maturing in 2023 fell to Rs 100.1675 from Rs 100.2450 previously, while its yield inched-up to 8.80 per cent from 8.79 percent.[caption id="attachment_1307831" align="alignleft" width="380"] Falling value. AFP[/caption]

The 8.28 percent government security maturing in 2027 declined to Rs 93.04 from Rs 93.14, while its yield fell moved up to 9.18 percent from 9.17 percent.

The 8.24 percent government security maturing in 2027 also dipped to Rs 92.71 from Rs 92.85, while its yield advanced to 9.21 percent from 9.19 percent.

The 8.12 percent government security maturing in 2020, the 7.28 percent government security maturing in 2019 and the 8.33 percent government security maturing in 2026 were also quoted down to Rs 95.3750, Rs 93.16 and Rs 93.70, respectively.

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The overnight call money rate ended steady at 8.75 percent. It moved in a range of 8.80 percent and 7.60 percent.

The Reserve Bank of India under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 395.66 billion in 62-bids at the One-day repo auction at a fixed rate of 7.75 percent, while sold securities worth Rs 2.03 billion from 2-bids at the One-day reverse repo auction at a fixed rate of 6.75 percent in the evening auction.

PTI