Markets

Bonds, call rates decline

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

The 6.84 per cent 10-year benchmark bond maturing in 2022 eased to Rs 96.45 from Rs 96.52, while its yield edged up to 7.78 per cent from 7.76 per cent.

The 7.59 per cent government security maturing in 2026 went-down to Rs 97.31 from Rs 97.35, while its yield inched up to 8.07 per cent from 8.06 per cent.

The 6.79 per cent government security maturing in 2027 slipped to Rs 92.88 from Rs 92.8875, while its yield held stable to 7.91 per cent.

The 8.20 per cent government security maturing in 2022 and the 7.16 per cent government security maturing in 2023 were also quoted lower to Rs 101.38 and Rs 97.14 respectively.

However, the 6.68 per cent government security maturing in 2031 rose by Rs 89.10 from Rs 88.93, while its yield edged down to 8.03 per cent from 8.05 per cent.

The overnight call money rates finished lower to 5.90 per cent from Monday's closing level of 6.10 per cent. It resumed steady at 6.10 per cent and moved in a range of 6.10 per cent and 5.80 per cent.

Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 168.12 billion in 23-bids at the overnight repo auction at a fixed rate of 6.00 per cent today morning, while it sold securities worth Rs 53.73 billion in 31-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on May 21.

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