Government bonds weakens on heavy selling pressure from banks and corporates

Government bonds (G-Secs) weakened further on heavy selling pressure from banks and corporates, while, Interbank call money rates continue remained stable as demand from borrowing banks matched supplies.

The 7.17 percent 10-year benchmark bond maturing in 2028 slid to Rs 94.2050 from Rs 94.60, while its yield gained to 8.06 percent from 8.00 percent. The 6.68 percent government security maturing in 2031 went-down to Rs 87.71 from Rs 88.13, while its yield moved up to 8.23 percent from 8.18 percent.

The 6.84 percent government security maturing in 2022 fell to Rs 95.60 from Rs 95.80, while its yield rose to 8.07 percent from 8.01 percent. The 7.59 percent government security maturing in 2026, the 8.12 percent government security maturing in 2020 and the 8.20 percent government security maturing in 2022 were also quoted lower to Rs 96.67, Rs 100.50 and Rs 100.3375 respectively.

The overnight call money rates ended stable at its Monday's closing level of 6.30 percent, It resumed higher to 6.45 percent and moved in a range of 6.45 percent and 6.25 percent.

Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 34.71 billion in 5-bids at the overnight repo operation at a fixed rate of 6.50 per cent as on today, while it sold securities worth Rs 411.59 billion in 58-bids at the overnight reverse repo auction at a fixed rate of 6.25 percent as on September 03.

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