Trading Volumes Slump, Yields On Gilts Up

The four-day repo auction had the desired effect on the prices of securities.

The yields on the short and the medium-term papers increased after undergoing a in the previous fortnight.

Trading volumes at the wholesale debt market segment of the National Stock Exchange (NSE) were lower at Rs 223 crore yesterday.

The 13.50-per cent central government security, which was trading at Rs 103.20 on Saturday, saw a deal for Rs 103.15.

It was struck for Rs 5 crore was at a yield of 11.90 per cent.

The prices of the zero-coupon security maturing in 1998 also declined.

The security, traded at Rs 62.81 last week, was quoting at Rs 62.76. It was dealt for Rs 11 crore at a yield of 13.03 per cent.

The call money rates varied between 2 and 2.5 per cent.

With the RBI pegging the cut-off rate on the four-day repo auction at 4 per cent, dealers said the call rates, too, could rule around 4 per cent.

The central bank withdrew Rs 980 crore from the banking system which was much lower than the market expectation.

The market had expected a inflow of Rs 2,000 crore into the system.