Call Continues Range-Bound
MONEY MARKET REPORt
Easy liquidity in the system saw interest rates in the inter-bank overnight money market hovering around 8-8.05 per cent yesterday. Call money rates opened at 8-05 per cent, ruled in the 8-8.05 per cent band, and dipped to close in the 7.75-7.80 per cent range. Some deals were also done at the 8.10 per cent levels during early morning trading, said dealers.
Prices of securities opened lower than the previous day. As the sentiment improved by noon, prices firmed by 1-3 paise. However, the rates closed lower.
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The 11.55 per cent government loan maturing in 2001 closed at Rs 100.08-100.09 as against Rs 100.10 the previous day. The 11.40 per cent 2000 was traded at around Rs 100.09.
Dealers expect call money rates to rule at levels lower than the repo rate on account of today being a reporting Friday for bank products. "Prices of securities are expected to firm up by 1-2 paise tomorrow," said dealers.
On the outflows side, the Reserve Bank of India (RBI) received 14 bids for Rs 2,032 crore at the fixed rate repos at eight per cent held by it yesterday. Corresponding inflow on account of maturing of repos was Rs 2,900 crore. With this, the outstanding repo held with RBI stands at Rs 4,618 crore.
The day also saw inflows of Rs 1,000 crore as the 12.30 per cent gilt matured yesterday.
The National Stock Exchange Mibid (overnight) was 8 per cent (standard deviation 0.0038) and the Mibor was 8.06 per cent (standard deviation 0.0038). The corresponding rates for 14 days was 8.41 per cent (standard deviation 0.0428) and 8.93 per cent (standard deviation 0.0425).