Calls Rule In 0.10 - 0.30% Range

MONEY MARKET REPORT

Up, up and away, this was the mood in the gilts market yesterday as the prices of securities went up and the yields on treasury bills crashed. The prices went up by an average of 15 to 20 paise. The driving force behind the bullish sentiments has been the low calls prevailing in the market since Wednesday when the rates crashed to 0.50 per cent.

The interest rates in the inter-bank overnight money market ruled in the band of 0.10 per cent to 0.30 per cent. Yesterday being the reporting Friday there were neither any borrowers among the banks nor were the primary dealers borrowing heavily from the money market.

In the T-bills segment the 364-day bills maturing in April next year were traded at a yield of 8.90 per cent to 9.10 per cent. Earlier during the week these papers were traded at over 9.50 per cent. In the securities market the price of the 12.14 per cent 2000 went up from Rs 100.55 to Rs 100.65. The 12.69 per cent 2002 which was trading at less than Rs 101 went up to Rs 101.10. The price of the 13.05 per cent was Rs 101.50.The 13.50 per cent 1998 was traded in the region of Rs 103.20, the 13.12 per cent 1999 in the band of Rs 103. 40 to Rs 103.60 and the 13.80 per cent 2002 above Rs 105.