Bonds close narrowly mixed,call rate declines

Government bonds closed narrowly mixed on alternate bouts of buying selling while call rate finished lower on overnight call money market here today on surfeit of liquidity in banking system. The 7.80 per cent government security maturing in 2021,the 8.08 per cent maturing in 2022 and 7.83 per cent maturing in 2018 held stable at Rs 98.04,Rs 98.67 and Rs 98.40 respectively while their yields also closed steady at their overnight levels of 8.09 per cent,8.26 per cent and 8.13 per cent,respectively.

However,the 8.13 per cent government security maturing in 2022,the 7.59 per cent maturing in 2016 and 7.17 per cent maturing in 2015 settled lower at Rs 99.06,Rs 97.55 and Rs 96.50,respectively,while their yields edged up slightly.

The 8.26 per cent government security maturing in 2027 rose to Rs 98.10 from Rs 98.03 yesterday while its yield held stagnent at 8.48 per cent and the 8.30 per cent maturing in 2040 improved to Rs 98.00 from 97.84 while its yield softened to 8.48 per cent from 8.50 per cent.

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The overnight call money rate concluded lower at 6.85 per cent from its last close of 7.00 per cent. It moved in a range of 7.05 per cent and 6.75 per cent.

The Reserve Bank of India (RBI) under the Liquidity

Adjustment Facility (LAF) purchased securities worth Rs 17,730 crore from 15 bids at the one-day repo auction at a fixed rate of 6.75 per cent.