The government bonds rose smartly on good buying support from banks and corporates even as the call rate also improved further on the overnight call money market on Monday on want of liquidity in the banking system.

The 8.08 per cent government security maturing in 2022 shot up to Rs 99.22 from Rs 98.85 previously, while its yield dropped to 8.19 per cent and 8.24 per cent.

The 8.13 per cent government security maturing in 2022 also firmed up to Rs 99.73 from Rs 99.43, while its yield dipped to 8.16 per cent from 8.21 last weekend.

The 7.17 per cent government security maturing in 2015 too improved to Rs 96.82 from Rs 96.68 last Friday, while its yield declined to 8.05 per cent from 8.09 per cent.

The 8.26 per cent government security maturing in 2022, the 7.99 per cent maturing 2017 and the 7.49 per cent gained at Rs 97.78, Rs 99.43 and Rs 97.0675 respectively.

The call money rate rallied further and ended strong at 7.00 per cent from its previous close of 6.65 per cent. It moved in a range of 7.00 per cent and 6.50 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 56,870 crore from 31 bids at one-day repo auction at a fixed rate of 6.50 per cent, while sold securities worth Rs 600 crore from one bid at one-day reverse repo auction at a fixed rate of 5.50 per cent.

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