Bonds weaken, call rates turn higher

Government bonds (G-Secs) weakened further on heavy selling pressure from banks and corporates, but the overnight call money rates turned higher following good demand from borrowing banks amid tight liquidity in the banking system.

The 6.68 per cent 10-year benchmark bond maturing in 2031 were declined to Rs 96.7675 from Rs 96.8500 yesterday, while its yield inched up to 7.05 per cent from 7.04 per cent.

The 6.79 per cent government security maturing in 2027 were slid to Rs 98.9650 from Rs 99.05 yesterday, while, its yield edged up to 6.94 per cent from 6.93 per cent.

The 6.79 per cent government security maturing in 2029 were dipped to Rs 97.3850 from Rs 97.4650 yesterday, while its yield up to 7.11 per cent from 7.10 per cent.

The 7.72 per cent government security maturing in 2025 and the 7.16 per cent government security maturing in 2023 were also quoted lower to Rs 104.00 and Rs 101.3250 respectively.

However, the 6.84 per cent government security maturing in 2022 were rose to Rs 100.34 as against Rs 100.33 yesterday, while, its yield held stable to 6.76 per cent.

The overnight call money rates ended higher at 6.02 per cent from Tuesday's level of 5.80 per cent. It resumed higher at 6.00 per cent and moved in a range of 6.05 per cent and 5.80 per cent.

Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 111.45 billion in 16-bids at the overnight repo auction at a fixed rate of 6.00 per cent today morning, while it sold securities worth Rs 115.56 billion in 38-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on November 07.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)