Bond prices firm up on good demand, call rates recover

The government securities firmed up due to good buying support from banks and corporates and call rates recovered at the overnight call money market here on Monday owing to fresh demand from borrowing banks.

The 8.13 per cent government security maturing in 2022 shot up to Rs 100.32 from 99.97 previously, while its yield declined to 8.09 per cent from 8.13 per cent.

The 8.08 per cent government security maturing in 2022 hardened to Rs 99.80 from Rs 99.48, while its yield moved down to 8.11 per cent from 8.15 per cent.

The 8.26 per cent government security maturing in 2027 rose to Rs 98.15 from Rs 97.76, while its yield looked down to 8.47 per cent from 8.51 per cent.

The 7.99 per cent government security maturing in 2017, the 7.49 per cent government security maturing in 2017 and the 8.30 per cent government security maturing in 2040 were also quoted higher at Rs 99.80, Rs 97.38 and Rs 97.65,respectively.

The call money rate finished higher at 6.85 per cent from last Friday’s closing level of 6.50 per cent. It moved in a range of 7.10 per cent and 6.85 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 51,710 crore from 36 bids at the one-day repo auction at a fixed rate of 6.50 per cent, while sold securities worth Rs 300 crore from one bid at the one-day reverse repo auction at a fixed rate of 5.50 per cent.