Government bonds decline on selling pressure from banks and corporates

Government bonds (G-Secs) declined on selling pressure from banks and corporates and the overnight call money rates finished lower due to lack of demand from borrowing banks amid comfortable liquidity in the banking system.

The 7.17 percent 10-year benchmark bond maturing in 2028 eased to Rs 95.26 from Rs 95.3950 previously, while its yield edged up to 7.89 percent from 7.87 percent.

The 7.59 percent government security maturing in 2026 slid to Rs 97.40 from Rs 97.43, while its yield ruled steady to 8.06 percent. The 6.68 percent government security maturing in 2031 fell to Rs 88.92 from Rs 89.0050, while its yield held stable to 8.06 percent.

The 6.84 percent government security maturing in 2022, the 7.06 percent government security maturing in 2046 and the 7.37 percent government security maturing in 2023 were also quoted lower to Rs 96.16, Rs 87.41 and Rs 97.78 respectively.

The overnight call money rates turned lower to 6.30 per cent from last Friday's closing level of 6.50 percent. It resumed higher at 6.55 percent and moved in a range of 6.55 per cent and 6.20 percent.

Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 39.48 billion in 6-bids at the overnight repo auction at a fixed rate of 6.50 per cent today morning, while it sold securities worth Rs 296.34 billion in 59-bids at the 3-days reverse repo auction at a fixed rate of 6.25 per cent as on August 24.

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