Call Rules Steady At 6-6.20%

MONEY MARKET REPORT

Interest rate in the overnight money market was easy yesterday on account of repo reversal inflows. Call rate, which had gone up to 8.75 per cent on Wednesday, opened yesterday at 6.05- 6.10 per cent, and ruled in the band of 6-6.20 per cent. There were some deals struck at 6.30 levels.

The weighted average call rate of the STCI was 6.07 per cent on a turnover of Rs 1800 crore.

On the inflows side, there was Rs 5091 crore coming in on reversal of repos conducted by the Reserve Bank of India on Monday. There was an outgo of Rs 3666 crore at the four day repo yesterday where the RBI received and accepted three bids.

In the treasury bills segment, the 364 day t-bills were traded at 8.90 per cent, and the July t-bills at 9 per cent.

Prices of government securities fell, and the news that the RBI was coming out with measures on the forex front caused a further fall by 5-10 paise. There was an expectation that interest rates would rise further. There was a deal for Rs 50 crore in the 13.75 per cent 2005 paper at Rs 108.17 or an yield of 11.97 per cent.

The zero coupon 1999 was traded at Rs 94.05-10, the 11.50 per cent 2004 at Rs 98.85 and the 11 per cent 2002 at Rs 98.20. Foreign banks were borrowers in the term market at 11.75-12 per cent.