Bonds advance, call rates turn higher

Government bonds (G-Secs) advanced following sustained demand from corporates and banks, and the overnight call money turned higher due to good demand from borrowing banks amid tight liquidity in the banking system.
The 7.59 per cent 10-year benchmark bond maturing in 2026 surged to Rs 108.5450 from Rs 108.37, while its yield softened to 6.34 per cent from 6.36 per cent.
The 6.97 per cent government security maturing in 2026 climbed to Rs 105.47 from Rs 105.24, while its yield eased to 6.21 per cent from 6.24 per cent.
The 7.61 per cent government security maturing in 2030 rose to Rs 110.43 from Rs 110.2150, while its yield moved down to 6.44 per cent from 6.46 per cent.
The 7.59 per cent government security maturing in 2029, the 7.68 per cent government security maturing in 2023 and the 7.88 per cent government security maturing in 2030 were also quoted higher to Rs 109.57, Rs 107.90 and Rs 112.2650, respectively.
The overnight call money rates finished higher to 6.20 per cent from Wednesday’s level 5.90 per cent. It resumed higher at 6.30 per cent and moved in a range of 6.30 per cent and 6.00 per cent.
Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 38.11 billion in 9-bids at the overnight repo auction at a fixed rate of 6.25 per cent today morning, while it sold securities worth Rs 43.05 billion in 20-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on November 30