Govt bonds slip on selling pressure, call rates finish lower

The 10-year benchmark bonds fell to Rs100.62 from Rs100.7925, while its yield rose to 6.88% from 6.85%


The 7.61% government security maturing in 2030 declined to Rs 103.59 from Rs 103.71. Photo: Reuters
The 7.61% government security maturing in 2030 declined to Rs 103.59 from Rs 103.71. Photo: Reuters

Mumbai: Government bonds (G-Secs) slipped on selling pressure from banks and corporates, and the overnight call money rates also finished lower due to lack of demand from borrowing banks amid comfortable liquidity situation in the banking system.

The 6.97% 10-year benchmark bond maturing in 2026 weakened to Rs 100.62 from Rs 100.7925, while its yield rose to 6.88% from 6.85%. The 7.61% government security maturing in 2030 declined to Rs 103.59 from Rs 103.71, while its yield inched up to 7.18% from 7.17%.

The 7.59% government security maturing in 2026 dipped to Rs 104.0625 from Rs 104.15, while its yield inched up to 6.96% from to 6.95%.

The 6.79% government security maturing in 2029, the 8.27% government security maturing in 2020 and the 8.15% government security maturing in 2022 were also quoted lower to Rs 97.88, Rs 104.4650 and Rs 105.10 respectively.

The overnight call money rates finished lower at 6.00% from yesterday’s level of 6.20%.

It resumed at 6.20% and moved in a range of 6.20% and 5.90%. Meanwhile, Reserve Bank of India (RBI), under the liquidity adjustment facility, purchased securities worth Rs905 crore in 1-bid at the overnight repo operations at a fixed rate of 6.25% as on Thursday, while it sold securities worth Rs 147.50 billion in 32-bids at the overnight reverse repo auction at a fixed rate of 6.00% as on April 19.

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