Free Press Journal

Bonds advance, call rates finish higher

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Mumbai: Government bonds (G-Secs) advanced on good buying support from banks and corporates and the overnight call money rates also finished higher due to fresh demands from borrowing banks amid adequate liquidity in the banking system. The 7.72 per cent government security maturing in 2025 rose to Rs 101.1125 from Rs 101.07 previously, while its yield inched down to 7.55 from 7.56 per cent. The 7.88 per cent government security maturing in 2030 went up to Rs 101.24 from Rs 101.15, while its yield eased to 7.73 per cent from 7.75 per cent. The 7.68 per cent government security maturing in 2023 touched Rs 100.5550 from Rs 100.4850, while its yield edged down to 7.58 per cent from 7.60 per cent. The 7.35 per cent government security maturing in 2024, the 8.27 per cent government security maturing in 2020 and the 8.15 per cent government security maturing in 2026 were also quoted higher to Rs 98.5350, Rs 102.40 and Rs 102.53 respectively.

The overnight call money rates finished higher at 7.10 per cent from Tuesday’s closing level of 6.70 per cent. It resumed higher at 6.80 per cent and moved in a wide range of 7.40 per cent and 6.75 per cent. Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 137.84 billion in 31-bids at the overnight repo auction at a fixed rate of 6.75 per cent as on today. It sold securities worth Rs 28.85 billion from 18-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on October 13.