Calls Zoom To 11%, Close Lower
MONEY MARKET REPORT
Rates in the inter-bank call money market were volatile yesterday as banks sought to cover their positions on the last day of the fortnight.
The rates opened at 11 per cent but closed at 8 per cent .There were a lot of up and down movements before the rates reached the closing levels. Most deals were struck between 10.25 per cent and 10.75 per cent.
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Liquidity situation remained tight as the Reserve Bank of India sucked out another Rs 1,000 crore from the system through its repos auction.
Dealers said that the tight liquidity conditions were caused partly by the two repos auctions and partly due to the fact that many banks have parked some of their funds in `on tap treasury bills with the Reserve Bank of India.
The State Bank of India (SBI) and the Unit Trust of India (UTI) were present in the market as lenders.
Trading in securities was also lacklustre as banks were more interested in covering short positions.
The 13.5 per cent 1997 paper saw trades amounting to Rs 25 crore at Rs 102.87.
The 13.5 1998 paper saw deals amounting to Rs 20 crore.