Saturday, December 29, 2007

Government Bonds Continue To Rule Firm

MUMBAI: Prices of government bond continued to rule firm due to persistent buying by banks and corporates, while call rates moved up on good demand from borrowing banks to meet current obligations in the overnight call money market here on Friday.

Select government bond prices rose by 20-45 paise. The 8.20 per cent government stock maturing in 2022 rose to Rs 101.74 from Rs 101.32 previously while its yield dropped to 7.99 per cent from 8.04 per cent.

The 8.33 per cent government security maturing in 2036 also moved up to Rs 101.84 from Rs 101.37 previously while its yield slipped to 8.16 per cent from 8.20 per cent.

The 7.95 per cent government security maturing in 2032 looked up to Rs 97.75 from Rs 97.35 previously while its yield eased to 8.16 per cent from 8.20 per cent.

The 7.38 per cent government security maturing in 2015 moved up to Rs 97.88 from Rs 97.65, the 7.49 per cent government stock maturing in 2017 to Rs 97.77 from Rs 97.57 and the 7.99 per cent 2017 to Rs 101.17 from Rs 101.00.

The overnight call money rate ended higher at 7.85 per cent as against 7.65 per cent yesterday. The 3-day call money rate ended at 7.60 per cent after moving in a range of 7.90 per cent and 7.50 per cent.

The Reserve Bank Of India (RBI), under the Liquidity Adjustment Facility (LAF) accepted 24 bids of Rs 33,865 crore at the three days repo auction at the rate of 7.75 per cent.

No comments: