Bonds firm up on fresh demand, call rate ends steady

Mumbai: Government bonds firmed up on fresh buying support from banks and corporates while call rate ended stable on overnight call money market here today on alternate bouts of demand and supply.

The 7.80 per cent government security maturing in 2021 jumped to Rs 98.04 from Rs 97.85 yesterday, while its yield declined to 8.09 per cent from 8.12 per cent.

The 8.08 per cent government security maturing in 2022 hardened to Rs 98.67 from Rs 98.55, while its yield moved down to 8.26 per cent from 8.28 per cent.

The 8.13 per cent government security maturing in 2022 rose to Rs 99.11 from Rs 98.97, while its yield eased to 8.25 per cent from 8.27 per cent.

The 7.83 per cent government security maturing in 2018, the 7.59 per cent government security maturing in 2016, the 8.30 per cent government security maturing in 2040 and the 8.26 per cent government security maturing in 2027 were also quoted higher at Rs 98.40, Rs 97.57, Rs 97.84 and Rs 98.03, respectively.

The overnight call rate ended settled the day at its previous closing level of 7.00 per cent. It moved in a range of 7.10 per cent and 6.75 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 11,070 crore from 19 bids at the one-day repo auction at a fixed rate of 6.75 per cent.

Source: Financial Express