Rbi Hikes Repos Cut-Off By 50 Bps

MONEY MARKET REPORt

The Reserve Bank of India (RBI) offered 50 basis points more at the repos auction and set the cut-off repos rate at 4.5 per cent.

At the repos auction the apex bank accepted the four bids for a sum of Rs 701 crore that it received. The weighted average repos rate was 4.178 per cent.

Interest rates in the inter-bank overnight money market opened in the region of 4.5-4.75 per cent, ruled in the 4-4.25 per cent band and closed at around 3.5 per cent.

The weighted average call money rate of Securities Trading Corporation of India was 3.82 per cent, while the Mibor was 3.87 per cent at close yesterday. The Mibor is a composite weighted average drawn from dealt rates contributed by 15 institutions and banks.

In the treasury bills segment, the recently auctioned 364-day treasury bills were traded at a yield of 7.8 per cent, the ones maturing in October, 1998, at 7.75 per cent, bills maturing in July at 7.50 per cent with the treasury bills maturing in April 1998 hovering around 7.4 per cent.

The prices of government securities were more or less maintained with some securities moving up by around five paise.