Government bonds eased on selling pressure from banks and corporates

Government bonds (G-Secs) eased on selling pressure from banks and corporates and the overnight call money rates ended 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 slipped to Rs 94.2475 from Rs 94.2875, while its yield inched up to 8.06 percent from 8.05 percent. The 6.68 percent government security maturing in 2031 declined to Rs 87.7525 from Rs 87.76, while its yield held stable to 8.23 percent.

The 6.84 percent government security maturing in 2022 slid to Rs 95.58 from Rs 95.63, while its yield rose to 8.08 percent from 8.06 percent.

The 7.59 percent government security maturing in 2026, the 6.90 percent government security maturing in 2019 and the 8.20 percent government security maturing in 2022 were also quoted lower to Rs 96.74, Rs 99.50 and Rs 100.33 respectively.

The overnight call money rates finished lower to 6.25 percent from Wednesday's level of 6.30 percent. It resumed higher at 6.40 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 38.46 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 272.96 billion in 61-bids at the overnight reverse repo auction at a fixed rate of 6.25 percent as on September 05.