Government bonds (G-Secs) surged rising demand from corporates and banks

Government bonds (G-Secs) surged following rising 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 firmed up to Rs 95.68 from Rs 95.61, while, its yield softened to 7.83 percent from 7.84 percent. The 6.84 percent government security maturing in 2022 rose to Rs 96.37 from Rs 96.28, while, its yield eased to 7.84 percent from 7.87 percent.

The 6.68 percent government security maturing in 2031 went-up to Rs 89.3750 from Rs 89.29, while, its yield inched down to 8.01 percent from 8.02 percent. The 7.59 percent government security maturing in 2026, the 7.37 percent government security maturing in 2023 and the 6.57 percent government security maturing in 2033 were also quoted higher to Rs 97.50, Rs 97.98 and Rs 86.50 respectively.

The overnight call money rates ended lower to 6.40 percent from Monday's level of 6.45 percent. It resumed higher to 6.50 percent and moved in a range of 6.60 percent and 6.25 percent.

Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 112.26 billion in 13-bids at the 2-days repo operations at a fixed rate of 6.50 per cent as on today, while, its sold securities worth Rs 85.85 billion in 42-bids at the overnight reverse repo auction at a fixed rate of 6.25 per cent as on August 20.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)