Government bonds weaken, call rates rule steady for 2nd day
Mumbai: Government bonds (G-Secs) weakened further on heavy selling pressure from banks and corporates, while, Interbank call money rates also ruled steady for the second day as demand from borrowing banks match supplies.
The 6.79 per cent 10-year benchmark bond maturing in 2027 dropped to Rs 93.03 from Rs 93.0650, while its yield inched up to 7.87 per cent from 7.86 per cent.
The 7.17 per cent government security maturing in 2028 dipped to Rs 96.4825 from Rs 96.6925, while its yield edged up to 7.68 per cent from 7.65 per cent.
The 6.68 per cent government security maturing in 2031 declined to Rs 89.64 from Rs 89.7150, while its yield edged up to 7.94 per cent from 7.93 per cent.
The 7.80 per cent government security maturing in 2021, the 6.84 per cent government security maturing in 2022 and the 7.83 per cent government security maturing in 2018 were also quoted lower to Rs 101.59, Rs 97.62 and Rs 100.0725 respectively.
The overnight call money rates held stable for the second day at 5.80 per cent, It resumed higher at 5.95 per cent and moved in a range of 6.85 per cent and 5.70 per cent.
Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 34.10 billion in 7-bids at the overnight repo operation at a fixed rate of 6.00 per cent as on today, while it sold securities worth Rs 577.55 billion in 55-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on March 13.