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This is an archive article published on March 19, 2012

Bonds settle mixed,call rate reacts downward

The government securities (G-Sec) settled mixed on alternate bouts of buying and selling.

The government securities (G-Sec) settled mixed on alternate bouts of buying and selling while call rate reacted downwards at the overnight call money market today due to lack of demand from borrowing banks.

The 8.79 per cent G-Sec maturing in 2021 recovered to Rs 102.4150 from last Friday’s close of Rs 102.38,while its yield held steady at 8.42 per cent.

The 7.83 per cent G-sec maturing in 2018 moved up to Rs 96.88 from Rs 96.85,while its yield was stable at 8.50 per cent.

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The 7.99 per cent G-sec maturing in 2017,the 8.97 per cent G-sec maturing in 2030 and the 8.83 per cent G-sec maturing in 2041 also quoted higher at Rs 98.05,Rs 102.95 and Rs 101.99,respectively.

However,the 9.15 per cent G-Sec maturing in 2024 eased to Rs 105.58 from Rs 105.60,while its yield ruled steady at 8.42 per cent and the 7.40 per cent G-Sec maturing in 2012 also quoted slightly lower at Rs 99.7575 from Rs 99.76 previously.

The overnight call money rate finished lower at 8.75 per cent from last weekend’s level of 9.10 per cent. It moved in a range of 9.00 per cent and 8.75 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 1,60,175 crore from 65 bids at the one-day repo auction at a fixed rate of 8.50 per cent while sold securities worth Rs 1,405 crore from three bids at the one-day reverse repo auction at a fixed rate of 7.50 per cent.

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