Calls Range-Bound At 8.75-9%
MONEY MARKET REPORT
Interest rate in the interbank, overnight call money market continued to remain range-bound yesterday.
It opened at around 9 per cent - 9.10 per cent. It ruled between 8.5-9.25 per cent, and most deals were done in the 8.90 per cent - 9 per cent range. It closed around the same levels, between 8.75-9 per cent.
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DFHI lent market support to the extent of Rs 1600 crore.Yields in the treasury bills market dipped marginally with t-bills maturing on April 24 being dealt at 12-12.10 per cent, April 10 t-bills at 11-11.25 per cent and March 16 t-bills at 9 - 9.25 per cent.
Security prices increased across-the-board by 20-40 paise in anticipation of a stable government, and reports in the media on the possibility of RBI ex-governor C Rangarajan taking over as the finance minister in event of a BJP-led government at the centre.
There was active interest in the 11 per cent, 2002 paper which was dealt at Rs 96.40.
There was demand for this security as it has been quoting at a greater discount than securities of similar maturities resulting in a kink in the YTM curve at that level.
Among other securities, 12 per cent, 1999, was dealt at Rs 100.30, 13.70 per cent, 1999, at Rs 102.22 and 10.85 per cent, 2001, at Rs 100.35.