Bonds recover on good demand, call rate ends higher

Written By Unknown on Kamis, 28 Maret 2013 | 23.06

The Government securities (G-Sec) rose on good buying support from banks and corporates, while the call money rates ended higher at the overnight call money market here today due to sustained demand from borrowing banks.

The 8.15 per cent G-Sec maturing in 2022 shot up to Rs 101.26 from Rs 101.0050 on Tuesday, while its yield declined to 7.95 per cent from 7.99 per cent.

The 8.33 per cent G-Sec maturing in 2026 rose to Rs 102.03 from Rs 101.96, while its yield held steady at 8.08 per cent. The 8.20 per cent G-Sec maturing in 2025 also climbed to Rs 100.99 from Rs 100.93, while its yield inched down to 8.07 per cent from 8.08 per cent.

Also read: 10-year yield may range between 7.94-8% says Sandeep Bagla

The 8.07 per cent G-Sec maturing in 2017, the 9.15 per cent maturing in 2024 and the 8.97 per cent maturing in 2030 were also quoted higher at Rs 100.65, Rs 107.6475 and Rs 106.6825 respectively.

The Overnight call money rate finished higher at 8.50 per cent from previous close of 7.80 per cent. It moved in a range of 8.50 per cent and 8.00 per cent and 5-days call money rate was quoted at 17.00 per cent, it moved in a range of 18.00 per cent and 8.90 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 1,135.80 billion in 45-bids at the five-days repo auction at a fixed rate of 7.50 per cent, while it sold securities worth Rs 60.20 billion in 3-bids at the 5-days reverse repo auction at a fixed rate of 6.50 per cent in the evening auction.



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