Bonds recover, call rates turn higher

Bonds recover, call rates to turn higher Mumbai, Sep 12 (PTI) Government bonds (G-Secs) recovered following renewed demand from corporates and banks.

The overnight call money rates also 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 93.77 from Rs 93.47, while its yield eased to 8.13 percent from 8.18 percent.

The 6.84 percent government security maturing in 2022 climbed to Rs 95.22 from Rs 95.10, while its yield moved down to 8.19 percent from 8.22 percent. The 6.68 percent government security maturing in 2031 rose to Rs 87.64 from Rs 87.24, while its yield edged down to 8.25 percent from 8.30 percent.

The 7.59 percent government security maturing in 2026, the 8.20 percent government security maturing in 2022 and the 8.15 percent government security maturing in 2022 were also quoted higher at Rs 96.20, Rs 100.00 and Rs 99.90 respectively. The overnight call money rates finished higher at 6.30 percent from Tuesday's level of 6.28 percent. It resumed higher at 6.60 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 36.96 billion in 7-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 293.00 billion in 59-bids at the overnight reverse repo auction at a fixed rate of 6.25 per cent as on September 11.