Calls Stay Anchored At 2 Per Cent

Inter-bank call money rates ruled at 2 per cent yesterday, unchanged from Wednesdays figures.

Although they opened at 3 per cent, calls dipped further to touch 2 per cent.

Dealers in the money market stated that the low rates in the market were mainly because of ample liquidity within the banking system.

This was on account of the recent 0.5 percentage point cut in cash reserve ratio requirements of banks which made banks see considerable inflow into the banking system. Dealers in the inter-bank money markets said there was a possibility of banks once again putting their funds in on-tap treasury bills.

There was hectic activity in the securities market with a large number of banks showing interest. Dealers said the prices of most securities shot up by 15-20 paise.

Some of the actively traded papers were the 13.5 per cent 1997, 13.5 per cent 1998, zero coupon 1999, zero coupon 2000 and the 13.82 per cent 2002.

Market operators expect the announcement of a new batch of government borrowing any time now. The market was divided over whether the new paper would be a 2001 paper or a 2003 paper.