Bonds drop, call rates turn higher

Mumbai, Jan 10 (PTI) Government bonds (G-Secs) droppedon sustained selling pressure from banks and corporates, butthe overnight call money rates turned higher following gooddemand from borrowing banks amid tight liquidity in thebanking system.The 6.79 per cent 10-year benchmark bond maturing in2027 weakened to Rs 95.6600 from Rs 96.1350, while its yieldrose to 7.44 per cent from 7.37 per cent.The 6.68 per cent government security maturing in 2031fell to Rs 92.8300 from Rs 93.51, while its yield moved up to7.53 per cent from 7.44 per cent.The 7.17 per cent government security maturing in 2028dipped to Rs 99.36 from Rs 100.08, while its yield up to 7.26per cent from 7.16 per cent.The 6.84 per cent government security maturing in2022, the 8.20 per cent government security maturing in 2022and the 8.24 per cent government security maturing in 2027were also quoted lower to Rs 98.32, Rs 103.28 and Rs 104.25respectively.The overnight call money rates finished higher at 5.90per cent from Tuesday's level of 5.80 per cent. It resumedhigher at 6.00 per cent and moved in a range of 6.00 per centand 5.80 per cent.Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 32.55 billion in 5-bids at the overnight repo auction at a fixed rate of 6.00 per cent today morning, while it sold securities worth Rs 134.63 billion in 40-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on January 9.

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