Call Rates Remain Subdued

MONEY MARKET REPORT

Activity in the inter-bank term money market appears to be perking up with overnight interest rates ruling easy. Banks that have been active include some south-based public and private sector ones. The rates on such deals have varied from 7.25 per cent to 7.5 per cent for one-month money. The amount of money involved in such deals are estimated to be in the region of 10 to 15 crore . Quotes for three-month money were also being floated at 10 per cent which did not find takers. Sources say that foreign banks have been actively looking at the funds .

Calls were subdued yesterday on account of reporting Friday and the rates on the deals varied from 0.25 per cent to 0.50 per cent in the overnight money market. The call rates are expected in the region of 5 per cent on Saturday and ease during the day to 3.5 per cent to four per cent levels. Three-day money quotes varied from 3.5 per cent and four per cent with a primary dealer wanting to place money at those levels . The best rates however were in the region of 3.75 per cent .

There was an upward price movement in the securities market with prices appreciating by 10 paise. Deals centered around loans having medium and short maturities.

Deals were struck in the 12.14 paper maturing 2000 trading at Re 1 premiums , the newly issued 12.59 loan maturing 2004 at 90 paise premium.