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This is an archive article published on July 4, 2012

Government bonds firm up on good demand,call rate improves further

The Government securities (G-Sec) firmed up on good buying support from banks and corporates,while call money rate ended lower at 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) firmed up on good buying support from banks and corporates,while call money rate ended lower at the overnight call money market here today due to lack of demand from borrowing banks amidst ample liquidity in the banking system.

The 9.15 per cent G-Sec maturing in 2024 climbed to Rs 105.84 from Rs 105.57 yesterday,while its yield declined 8.38 per cent from 8.41 per cent.

The 8.19 per cent G-Sec maturing in 2020 rose to Rs 99.95 from 99.6850,while its yield dropped to 8.20 per cent from 8.25 per cent previously.

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The 8.79 per cent G-Sec maturing in 2021 also surged to Rs 102.93 from 102.71,while its yield eased to 8.33 per cent from 8.36 per cent.

The 8.15 per cent G-Sec maturing in 2022,the 8.07 per cent maturing in 2017 and the 8.28 per cent maturing in 2027 also quoted higher at Rs 99.93,Rs 100.15 and Rs 98.76 respectively.

The Overnight call money rate finished lower at 7.05 per cent from last close of 8.00 per cent. It moved in a range of 8.30 per cent and 7.05 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 48,365 crore in 30 bids at the one-day repo auction at a fixed rate of 8.00 per cent,while sold securities worth Rs 890 crore from 2 bids at the one-day reverse repo auction at a fixed rate of 7 per cent.

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