Call Steady Around 6.30%

MONEY MARKET REPORT

Interest rate in the inter-bank overnight money market opened in the 6.50-6.70 per cent range yesterday. The call rate ruled between 6.25-6.50 per cent and closed the day at around 6-6.30 levels. The weighted average call rate of the Securities Trading Corporation of India (STCI) was 6.44 per cent on a turnover of Rs 1900 crore. The National Stock Exchange Mibid was 6.43 per cent (standard deviation 0.0261) and Mibor was 6.63 per cent (standard deviation 0.0175). The Reserve Bank of India (RBI) received and accepted three bids for Rs 1,878 crore at the three-day fixed rate repos yesterday.

Trading in the secondary market for government securities was quiet on the eve of the auction of four-year paper for Rs 2,500 crore. There was offloading seen by nationalised banks but this was not in any significant quantum. The State Bank of India was seen quoting 11.70 per cent for four-year papers yesterday. This is also the expected cut-off yield by most market players at today's auction. The RBI has given primary dealers the option of underwriting 50 per cent of the notified amount and the commissions will be finalised today. Among traded securities, the 11.15 per cent 2002 was dealt at an yield of around 11.69%. The 11.55% 2001 gilt was traded at Rs 100.15 and the 12 per cent 1999 at Rs 100.56.