Call Rates In 6.90-7.10 Range

Call money rates remained in the 6.90-7.10 per cent range on the back of ample liquidity. Government security prices went up by 10-15 paise at the medium to the long end after the Reserve Bank of India (RBI) declared the dividend payment to the Central government.

Call rates opened in the 7-7.10 per cent level and came down marginally to close in the 6.90-6.95 per cent band.

According to a dealer with a private sector bank, there was not much demand for overnight money as many players had covered their position for the fortnight.

The apex bank did not receive any bid for its one-day repo as well as reverse-repo auctions.

Prices in the government security market remained steady in the early hours, but went up marginally at the medium to the long end towards the close.

Dealers said as the central bank has declared dividend, a further auction in the near future is unlikely and so prices moved up a bit.

Call rates are expected to remain in the 6.75-7 per cent range tomorrow.

"On Saturday, the demand in the call money market is generally low and as majority of banks and primary dealers are flushed with funds, call rates are likely to remain below the seven per cent level tomorrow," senior dealer said.

Government security prices are expected to move in a band of 10-15 paise amidst thin volume of trading tomorrow.

"We do not expect the upturn witnessed today afternoon to stay for long. We expect prices to remain rangebound tomorrow," the treasury head of a private sector bank said.