Home Market Govt bonds surge, call rates turn lower

Govt bonds surge, call rates turn lower

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Government bonds (G-Secs) surged following rising demand from corporates and banks, while, the overnight call money rates turned lower due to lack of demand from borrowing banks amid comfortable liquidity in the banking sytem.

The 7.17 per cent government security maturing in 2028 firmed up to Rs 95.68 from Rs 95.61, while, its yield softened to 7.83 per cent from 7.84 per cent.

The 6.84 per cent government security maturing in 2022 rose to Rs 96.37 from Rs 96.28, while, its yield eased to 7.84 per cent from 7.87 per cent.

The 6.68 per cent government security maturing in 2031 went-up to Rs 89.3750 from Rs 89.29, while, its yield inched down to 8.01 per cent from 8.02 per cent.

The 7.59 per cent government security maturing in 2026, the 7.37 per cent government security maturing in 2023 and the 6.57 per cent government security maturing in 2033 were also quoted higher to Rs 97.50, Rs 97.98 and Rs 86.50 respectively.

The overnight call money rates ended lower to 6.40 per cent from Monday's level of 6.45 per cent. It resumed higher to 6.50 per cent and moved in a range of 6.60 per cent and 6.25 per cent.

Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 112.26 billion in 13-bids at the 2-days repo operations at a fixed rate of 6.50 per cent as on today, while, its sold securities worth Rs 85.85 billion in 42-bids at the overnight reverse repo auction at a fixed rate of 6.25 per cent as on August 20.

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