Monday, November 29, 1999

Bonds drop on selling pressure, call rate recovers

News posted by www.newsinfoline.com

Mumbai, June 17 (PTI) Government bond prices declined due to heavy selling pressure from banks and corporates, while call rate ended higher at 5.35 per cent on shortage of liquidity in the banking system at the overnight call money market here today. The 7.80 per cent government security maturing in 2020 dropped to Rs 101.07 from Rs 101.44 yesterday, while its yield rose to 7.64 per cent from 7.59 per cent. The 8.20 per cent government security maturing in 2022 declined to Rs 101.50 from Rs 101.90, while its yield moved up to Rs 8.00 per cent from 7.94 per cent. The 7.17 per cent government security maturing in 2015 fell to Rs 99.70 from Rs 99.85, while its yield looked up to Rs 7.24 per cent from 7.21 per cent. The 7.02 per cent government security maturing in 2016, 8.26 per cent government security maturing in 2027 and the 6.35 per cent government security maturing in 2020 also quoted lower at Rs 96.95, Rs 100.40 and Rs 90.00, respectively. The call money rate finished higher at 5.35 per cent from yesterday''s closing level of 5.10 per cent after moving in a range of 5.40 per cent to 4.00 per cent. The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) collected Rs 395 crore from two bids at the one day reverse repo auction at the rate of 3.75 per cent and Rs 8,270 crore from eight bids at the one day repo auction at a fixed rate of 5.25 per cent.

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