Bonds decline, call rates turn higher

Government bonds (G-Secs) declined on selling pressure from banks and corporates, but the overnight call money rates turned higher following good demand from borrowing banks amid tight liquidity in the banking system.

The 6.79 percent 10-year benchmark bond maturing in 2027 slipped to Rs 98.1975 from Rs 98.35, while its yield edged up to 7.05 percent from 7.03 percent.

The 6.68 per cent government security maturing in 2031 dipped to Rs 96.2250 from Rs 96.4825, while its yield moved up to 7.11 percent from 7.08 percent.

The 6.79 per cent government security maturing in 2029 went-down to Rs 97.50 from Rs 97.52, while its yield held stable to 7.10 percent.

The 7.16 per cent government security maturing in 2023, the 8.17 percent government security maturing in 2044 and the 8.20 percent government security maturing in 2025 were also quoted lower to Rs 100.86, Rs 106.61 and Rs 105.74 respectively.

The overnight call money rates finished higher at 5.80 percent from Wednesday's level of 5.76 percent. It resumed higher at 5.90 percent and moved in a range of 5.95 percent and 5.70 percent.

Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 27.95 billion in 5-bids at the overnight repo auction at a fixed rate of 6.00 percent on Thursday morning, while it sold securities worth Rs 227.08 billion in 59-bids at the overnight reverse repo auction at a fixed rate of 5.75 percent as on December 06.