Govt bonds firm up, call rates turn higher
Government bonds (G-Secs) firmed up following sustained 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 per cent 10-year benchmark bond maturing in 2028 surged to Rs 95.63 from Rs 95.40, while its yield edged down to 7.83 per cent from 7.86 per cent.
The 6.68 per cent government security maturing in 2031 rose to Rs 89.3050 from Rs 89.05, while its yield moved down to 8.00 per cent from 8.04 per cent.
The 6.84 per cent government security maturing in 2022 climbed to Rs 96.14 from Rs 96.02, while its yield eased to 7.88 per cent from 7.91 per cent.
The 7.59 per cent government security maturing in 2026, the 7.16 per cent government security maturing in 2023 and the 7.80 per cent government security maturing in 2020 were also quoted higher at Rs 97.4050, Rs 96.84 and Rs 100.58 respectively.
The overnight call money rates ended higher at 6.25 per cent from Tuesday's level of 6.20 per cent. It resumed higher at 6.30 per cent and moved in a range of 6.35 per cent and 6.10 per cent.
Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 197.96 billion in 27-bids at the overnight repo operations at a fixed rate of 6.25 per cent as on today, while, its sold securities worth Rs 78.90 billion in 41-bids at the overnight reverse repo auction at a fixed rate of 6.00 per cent as on Jun 19.