Calls Stay Firm Around 11 Per Cent
MONEY MARKET REPORT
Inter-bank call money rates ruled at 11 per cent for the better part of yesterday.
On the other hand, securities' prices continued to rise as banks purchased papers. They did so in anticipation of a decline in the call rates next week, after the first round of cuts in the Cash Reserve Ratio.
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The liquidity situation in the market was stated to be comfortable. There was a fair amount of trading even as banks were shoring up their holdings of securities to meet their fortnightly requirements, the reporting Friday being only a day away. Many provident funds were also reported to be purchasing securities.Banks were seen demanding gilts, particularly the treasury bills and long-term papers.
The new 13.4-per cent 1999 paper drew volumes aggregating Rs 87.73 crore at a price of Rs 100.70 and yield of over 13 per cent. The 13.5-per cent 1998 paper garnered Rs 45 crore at yields of over 11 per cent.
The 91-day treasury bills maturing in March recorded trades worth Rs 8.70 crore at prices of over Rs 98 and yields of over 8 per cent. Among the 364-day treasury bills, the papers maturing July 20, 1997, August 15, 1997, and December 19, 1997 attracted volumes of Rs 20 crore each.