Overnight Rates Over 9.5%

MONEY MARKET REPORT

The inter-bank call money rate ruled in the 9.50-9.75 per cent range. It opened in the 9.50 per cent level and touched a low of 9.25 per cent before closing at 9. 75 per cent.

Dealers said the rise in forward premium has impact on the sentiments of traders and thus the money market was tight. Consequently call rate is expected to rule at a higher level of around 10 per cent today," added the dealer.

The average rate of Securities Trading Corporation of India (STCI) was 9.64 per cent yesterday against the previous days rate of 9.20 per cent. The corporation witnessed a trading volume of Rs 1,400 crore. The Mumbai inter-bank overnight average was 9.53 per cent against the previous days rate of 9.16 per cent.

There were very few deals being executed as most of the traders were adopting a wait and watch policy, said another dealer.

The prices of government securities crashed as there were net sellers of securities. The 364-day treasury bill maturing on April 4 was traded at a weighted average yield of 13.39 per cent against the previous days yield of 11.11 per cent.

The 13.85 per cent government loan maturing in 2006 was traded at a weighted yield of 12.66 per cent against the previous days yield of 12.55 per cent.