Government bond falls on selling pressure

The government bond prices declined due to fresh selling pressure from banks and corporates, while call rates finished higher at 7.00 per cent at the overnight call money market here today, owing to good demand from borrowing banks.

The 8.08 per cent government security maturing in 2022 declined to Rs 100.00 from of 100.17, while its yield moved up to 8.08 per cent from 8.06 per cent.

The 8.13 per cent government security maturing in 2022 dropped to Rs 100.49 from Rs 100.71, while its yield rose to 8.06 per cent from 8.03 per cent.

The 8.26 per cent government security maturing in 2027 eased to Rs 98.65 from Rs 98.70, while its yield ruled steady 8.41 per cent.

The 7.99 per cent government security maturing in 2017, the 7.49 per cent government security maturing in 2017 and the 7.80 per cent government security maturing in 2020 were also quoted lower at Rs 99.97, Rs 97.60 and Rs 99.13, respectively.

The call money rate ended higher at 7.00 per cent from overnight closing level of 6.80 per cent. It moved in a range of 7.00 per cent and 6.95 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility purchased securities worth Rs 31,835 crore from 27 bids at the three-days repo auction at a fixed rate of 6.50 per cent.

Source: Financial Express