Bonds drop, call rates turn higher

Government bonds (G-Secs) dropped on selling pressure from banks and corporates, while, the overnight call money rates 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 went-down to Rs 95.60 from Rs 96.2475 previously, while its yield rose to 7.83 per cent from 7.73 per cent. 

The 6.68 per cent government security maturing in 2031 eased to Rs 88.90 from Rs 89.67, while its yield moved up to 8.05 per cent from 7.95 per cent. 

The 6.84 per cent government security maturing in 2022 weakened to Rs 96.05 from Rs 96.3850, while its yield gained to 7.88 per cent from 7.79 per cent. 

The 6.79 per cent government security maturing in 2027, the 8.27 per cent government security maturing in 2020 and the 8.15 per cent government security maturing in 2022 were also quoted lower to Rs 92.92, Rs 101.44 and Rs 101.00 respectively. 

The overnight call money rates finished higher at 6.05 per cent from last Friday's closing level of 5.80 per cent. It resumed higher at 6.00 per cent and moved in a range of 6.05 per cent and 5.75 per cent. 

Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 72.57 billion in 12-bids at the overnight repo auction at a fixed rate of 6.00 per cent today morning, while it sold securities worth Rs 339.50 billion in 86-bids at the 3-days reverse repo auction at a fixed rate of 5.75 per cent as on May 11.