Calls Rule In 8.5-9% Band

MONEY MARKET REPORT

Interest rates in the inter-bank overnight money market opened in the 8.75-9 per cent region, ruled in the 8.5-9 per cent band and closed around 8 per cent.

As call rates were ruling high, the central bank did not receive any response at the repos auction yesterday.

This is the second consecutive repos auction where the apex bank has not received any bids. There was not much activity in the treasury bills segment in line with the high call rates.

There was hardly any trading in the securities market and prices held steady yesterday.

Total volumes in SGL were Rs 126.77 crore with only a handful of securities traded. As it is, volumes in the securities market have slumped subsequent to the turmoil in the forex market.

Our daily traded volumes have slumped from a high of Rs 175 crore to Rs 10 crore, said one primary dealer, while another remarked that his volumes have slumped from an average of Rs 50 crore to Rs 5-10 crore.

While the 12.59 per cent paper maturing in 2004 was traded in the Rs 104.35-10.450 region, deals were struck in the 11.l5 per cent security maturing in 2002 at par. The 13.40 per cent paper maturing in 1999 was traded in the Rs 105 region.