Free Press Journal

Bonds end mixed, call rates finish higher

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Mumbai: Government bonds (G-Sec) ended mixed on alternate bouts of buying and selling today. However, overnight call money rates finished higher on sustained demand from borrowing banks amid tight liquidity in the banking system. The 8.40 per cent government security maturing in 2024 fell to Rs 103.8850 from Rs 103.9450, while its yield inched- up to 7.81 per cent from 7.80 per cent, previously.

The 8.60 per cent government security maturing in 2028 declined to Rs 106.4150 from Rs 106.4375, while its yield held stable at 7.81 per cent. The 8.83 per cent government security maturing in 2023 eased to Rs 105.78 from Rs 105.82, while its yield held steady at 7.89 per cent. However, the 8.27 per cent government security maturing in 2020 rose to Rs 101.6475 from Rs 101.63, while its yield edged down to 7.87 per cent from 7.88 per cent. The 8.15 per cent government security maturing in 2026 climbed to Rs 103.3175 from Rs 103.27, while its yield moved down to 7.71 per cent from 7.74 per cent. The overnight call money rates finished higher at 6.65 per cent from last Friday’s closing level of 6.50 per cent. It moved in a wide range of 8.10 per cent and 6.50 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 218.69 billion in 57-bids at the 1-day repo auction at a fixed rate of 7.50 per cent today morning, while it sold securities worth Rs 76.79 billion from 12-bids at the 3-days reverse repo auction at a fixed rate of 6.50 per cent as on Mar 13.