Money & Banking

Bonds recover, call rates end higher

PTI Mumbai | Updated on January 22, 2018 Published on December 30, 2015

Government bonds (G-Secs) recovered on buying support from banks and corporates, while the overnight call money rate ended higher owing to good demand from borrowing banks amid tight liquidity in the banking system.

The 7.72 per cent government security maturing in 2025 rose to Rs 99.80 from Rs 99.76 previously, while its yield held stable at 7.75 per cent. The 7.88 per cent government security maturing in 2030 climbed to Rs 99.5175 from Rs 99.3375, while its yield fell to 7.94 per cent from 7.96 per cent.

The 7.68 per cent government security maturing in 2023 gained to Rs 99.77 from Rs 99.75, while its yield held steady at 7.72 per cent.

The 11.60 per cent government security maturing in 2020, the 7.59 per cent government security maturing in 2029 and the 7.35 per cent government security maturing in 2024 were also quoted higher at Rs 115.61, Rs 97.9975 and Rs 97.53, respectively.

The overnight call money rates ended higher at 6.70 per cent from Tuesday’s level of 6.00 per cent. It moved in a range of 7.05 per cent and 6.10 per cent.

Meanwhile, RBI, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 104.20 billion in 16 bids at the one-day repo auction at a fixed rate of 6.75 per cent as on today.

It sold securities worth Rs 107.33 billion from 35 bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on Dec 29 evening.

Published on December 30, 2015
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