Mumbai: Government bonds (G-Secs) surged following rising demand from companies and banks and the interbank call money rates also turned higher due to good demand from borrowing banks amid a tight liquidity situation in the banking system.

The 6.79% government security maturing in 2027 gained to Rs100.3350 as compared to Rs100.33 Tuesday, while its yield held stable at 6.74%. The 6.79% government security maturing in 2029 rose to Rs98.18 from Rs98.1250, while its yield inched down to 7.01% from 7.02%.

The 6.68% government security maturing in 2031 went up to Rs97.69 from Rs97.49 yesterday, while its yield softened to 6.94% from 6.96%. The 6.57% government security maturing in 2033, the 7.73% government security maturing in 2034 and the 8.08% government security maturing in 2022 were also quoted higher at Rs94.70, Rs104.09 and Rs105.25 respectively.

The overnight call money rates finished higher at 5.80% from Tuesday’s level 5.75%. It resumed higher at 6.00% and moved in a range of 6.00% and 5.60%.

Meanwhile, the Reserve Bank of India (RBI), under the liquidity adjustment facility (LAF), purchased securities worth Rs21.30 billion in 3 bids at the overnight repo operation at a fixed rate of 6.00% as on Wednesday, while it sold securities worth Rs169.30 billion from 47 bids at the overnight reverse repo auction at a fixed rate of 5.75% as on 10 October.

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