Calls Rule Around 7-8 Per Cent

MONEY MARKET REPORT

Call rates ruled in the 7-8.5 per cent region yesterday. The weighted average call rate of STCI was 7.75 per cent while MIBOR was 7.9 per cent.

At the three-day fixed rate repos, RBI accepted the only bid for Rs 1,000 crore it received at a repos rate of 6.50 per cent. Security prices recovered by around 100 paise subsequent to the apex banks decision to purchase the 11.15 per cent paper maturing in 2002 at Rs 100.20, the 12.59 per cent security maturing in 2004 at Rs 106.30 and the 11.19 per cent paper maturing in 2005 at Rs 99.80. Sentiments of the market improved and according to a primary dealer since prices recovered to beyond the level at which RBI was purchasing, no purchases were effected by the central bank.

The price of the 11.83 percent paper maturing in 2003 recovered to Rs 103.10-103.30 as against its previous close of Rs 102.50-102.85, the 11.15 per cent security maturing in 2002 to Rs 101.10 from Rs 100.40, the 10.85 percent paper maturing in 2001 at Rs 100.35 as against Rs 99.50 earlier and the 12.59 per cent paper maturing in 2004 rose to Rs 107 against Rs 105.50-106. Treasury bill yields remained firm with the April, 1998, treasury bills traded at 8.15 per cent and the November, 1998, treasury bills at 8.65-8.75 per cent.