Govt Bonds, call rates firm up

Government bonds (G-Secs) firmed up following persistent demand from corporates and banks. 

The overnight call money rates also finished higher due to rising 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 95.55 from Rs 95.25, while its yield edged down to 7.83 per cent from 7.88 per cent. 

The 6.68 per cent government security maturing in 2031 rose to Rs 88.78 from Rs 88.5750, while its yield edged down to 8.07 per cent from 8.09 per cent. 

The 6.84 per cent government security maturing in 2022 gained to Rs 96.48 from Rs 96.22, while its yield moved down to 7.77 per cent from 7.83 per cent 

The 6.79 per cent government security maturing in 2027, the 8.20 per cent government security maturing in 2022 and the 8.15 per cent government security maturing in 2022 were also quoted higher at Rs 92.95, Rs 101.3850 and Rs 101.30 respectively. 

The overnight call money rates ended higher at 6.00 per cent from Thursday's level of 5.85 per cent. It resumed higher at 5.90 per cent and moved in a range of 6.05 per cent and 5.00 per cent. 

The 3-days call money rates opened 6.05 per cent and finished at 6.00 per cent. It moved in a range of 6.10 per cent and 5.85 per cent. 

Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 124.19 billion in 27-bids at the overnight repo  operations at a fixed rate of 6.00 per cent as on today, while, its sold securities worth Rs 19.84 billion in 24-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on May 17. PTI BPD BPD.