Call Rates Slide To 1.5 Per Cent

MONEY MARKET REPORT

Rates in the inter-bank call money market slipped to 1.5 per cent yesterday. The call rates, which opened around 4.5 per cent, came down steadily during the course of the day. There was abundant liquidity in the system with hardly any borrowers. Money market dealers said that with reporting Friday around the corner, the rates may continue to rule at lower levels.

The Reserve Bank of India (RBI) has announced a three-day repos auction on March 27, 1997. If call rates continue to rule at this level, then there is a possibility of good response to this auction.

The apex bank has retained the notified amount in the forthcoming auction of 91-day treasury bills, scheduled for this Thursday, at Rs 100 crore. The central bank also revised its price list as part of its open market operations yesterday.

In spite of the calls declining, activity in the treasury bills segment did not pick up. Some interest was expressed in the 364-day paper maturing in March next year.

There was significant activity in the securities market with both buyers and sellers active in the market. The prices firmed up slightly in the morning, only to come down marginally by the end of the day.