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This is an archive article published on May 18, 2012

Bonds settle mixed,call rate declines

The government securities (G-Sec) settled mixed on alternate bouts of buying and selling while call rate declined on the overnight call money market here today due to lack of demand from borrowing banks amidst ample liquidity in the banking system.

The government securities (G-Sec) settled mixed on alternate bouts of buying and selling while call rate declined on the overnight call money market here today due to lack of demand from borrowing banks amidst ample liquidity in the banking system.

The 8.79 per cent G-Sec maturing in 2021 fell back to Rs 101.69 from overnight close of Rs 101.89,while its yield firmed up to 8.53 per cent from 8.49 per cent

The 8.28 per cent G-sec maturing in 2027 also declined to Rs 95.90 from Rs 96.00,while its yield inched up to 8.77 per cent from 8.76 per cent.

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However,the 9.15 per cent G-Sec maturing in 2024 moved up further to Rs 104.6750 from Rs 104.62,while its yield softened to 8.53 per cent from 8.54 per cent.

The 8.97 per cent G-Sec maturing in 2030 also rose to Rs 101.49 from Rs 101.40,while its yield looked down to 8.80 per cent from 8.81 per cent.

The overnight call money rate finished lower at 8.00 per cent from yesterday’s level of 8.20 per cent. It moved in a range of 8.10 per cent and 7.95 per cent. The 3-days call money rate moved in a range of 8.35 per cent and 7.95 per cent before concluding at 8.25 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 53,205 crore from 33 bids at the three-days repo auction at a fixed rate of 8.00 per cent while sold securities worth Rs 15 crore from one bid at the three-days reverse repo auction at a fixed rate of 7.00 per cent.

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