Call Rates Rule In 4.75-6% Range
MONEY MARKET REPORT
The prices of government securities declined by around 20 paise yesterday. This was on account of the fact that banks were consolidating their position in the securities market after the announcement of the auction of three-year paper for raising Rs 3,000 crore.
The RBI had announced the auction of three-year paper on Tuesday evening. Conseqently, yesterday banks were reshuffling their portfolio with a view to subscribing to this paper.
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Price of the 12.69 per cent 2002 went down by nearly 25 paise to touch Rs 100.25. At the longer end there was not much activity in the 13.05 per cent 2002. The price of this security had gone up to nearly Rs 101.
The overnight interest rates ruled in the band of 4.75 per cent to six per cent. Call money rates are expected to be stable in the coming days. There was some activity in the treasury bills market. Given that there is hardly any floating stock of 91-day treasury bill, the activity is principally concentrated around the 364-day treasury bills. Treasury bills maturing in November were traded at 9.17 per cent, while those in February next year were quoted in the band of 9.40 per cent.