Bonds recover while call rate remains firm

Govt bonds recovered some lost ground last couple of days on fresh buying by corporates and banks.

Government bonds recovered some lost ground last couple of days on fresh buying by corporates and banks while call rates continued to rule firm on the overnight call money market on liquidity crunch.

The 8.08 per cent government security maturing in 2022 recouped to Rs 99.7050 from Rs 99.65 on Monday,while its yield eased to 8.12 per cent from 8.13 per cent.

The 8.13 per cent government security maturing in 2022 also rose to Rs 100.18 from Rs 100.09,while its yield edged down to 8.11 per cent from 8.12 per cent previously.

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The 8.26 per cent government security maturing in 2027 too firmed up to Rs 99.20 from Rs 99.05,while its yield declined to 8.35 per cent from 8.37 per cent.

The 7.99 per cent government security maturing in 2017,the 7.17 per cent government security maturing in 2015 and the 7.80 per cent government security maturing in 2020 also ended higher at Rs 99.95,Rs 97.20 and Rs 98.63 respectively.

Call rate ended better at 7.75 per cent from 7.70 per cent yesterday. It moved in a range of 7.85 per cent and 7.60 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 43,270 crore from 32 bids at the One-day repo auction at a fixed rate of 6.75 per cent.