Government bonds firms up following rising demand from corporates and banks

Government bonds (G-Secs) firmed up following rising demand from corporates and banks. The overnight call money rates too turned higher due to good demand from borrowing banks amid tight liquidity in the banking system.

The 7.17 percent 10-year benchmark bond maturing in 2028 went-up to Rs 95.3950 from Rs 95.3525, while its yield inched down to 7.87 percent from 7.88 percent.

The 6.84 percent government security maturing in 2022 surged to Rs 96.23 from Rs 96.2025, while its yield eased to 7.88 percent from 7.89 percent. The 6.68 percent government security maturing in 2031 slid to Rs 89.0050 from Rs 89.0825, while its yield gained to 8.06 percent from 8.04 percent.

The 7.59 percent government security maturing in 2026, the 7.06 percent government security maturing in 2046 and the 7.80 percent government security maturing in 2020 were also quoted higher at Rs 97.43, Rs 87.4775 and Rs 100.32 respectively.

The overnight call money rates finished higher at 6.50 percent from yesterday's level of 6.35 percent. It resumed higher at 6.55 percent and moved in a range of 6.60 percent and 6.20 percent.

Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility purchased securities worth Rs 76.49 billion in 10-bids at the 3-day repo operations at a fixed rate of 6.50 per cent as on today, while, its sold securities worth Rs 156.19 billion in 43-bids at the overnight reverse repo auction at a fixed rate of 6.25 per cent as on August 23.

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