Government bonds drop, call rates turn lower

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Government bonds (G-Secs) on Tuesday fell on selling pressure from banks and corporates and the overnight call money rates turned lower due to lack of demand from borrowing banks amid comfortable liquidity in the banking system.

The 7.17 per cent 10-year benchmark bond maturing in 2028 weakened to Rs 93.47 from Rs 93.62, while its yield gained to 8.18 per cent from 8.16 per cent.

The 6.68 per cent government security maturing in 2031 went-down to Rs 87.24 from Rs 87.4225, while its yield edged up to 8.30 per cent from 8.28 per cent.

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The 6.84 per cent government security maturing in 2022 decreased to Rs 95.10 from Rs 95.2325, while its yield moved up to 8.22 per cent from 8.18 per cent.

The 6.65 per cent government security maturing in 2020, the 7.59 per cent government security maturing in 2026 and the 8.20 per cent government security maturing in 2022 were also quoted lower at Rs 98.08, Rs 96.13 and Rs 99.92 respectively.

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The overnight call money rates ended lower to 6.28 per cent from Monday’s closing level of 6.70 per cent, it resumed lower at 6.55 per cent and moved in a range of 6.80 per cent and 6.25 per cent.

Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 155.79 billion in 17-bids at the overnight repo operation at a fixed rate of 6.50 per cent as on today, while it sold securities worth Rs 76.59 billion in 39-bids at the overnight reverse repo auction at a fixed rate of 6.25 per cent as on September 10.

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