Overnight Tags Stick To Slot

MONEY MARKET REPORT

Interest rates in the inter-bank overnight money market remained range-bound between 8.90 and 9.15 per cent yesterday.

The National Stock Exchange (NSE) Mibid was 8.99 per cent (standard deviation 0.0080) and the Mibor was 9.12 per cent (standard deviation 0.0098).

At the three-day fixed-rate repos at eight per cent, the Reserve Bank of India (RBI) did not receive any bids.

There seems to be a decline in the amount of surplus liquidity but this may emerge during the next week, when players are comfortable with their product build up, said dealers.

The rally in prices in the dated securities segment, which began in the beginning of this week, continued especially in the zero coupon securities, as players took positions prior to the credit policy to be announced by the RBI on Friday.

"Even if there is a fall in prices after the policy, players would have made good the loss by way of interest earned between now and the point of offloading the securities," pointed out a dealer.

The zero-coupon 1999 was traded at 97.79-81, the zero coupon 2000 maturing on July 13 was dealt at 82.69, against deals done at Rs 82.64 on Tuesday.