Money Market

Sentiment: Cautious

Gilt yields declined as the market felt the on-tap sale of state loans will sail through.

The illiquid 10.03 per cent 2019 gilt opened at Rs 130 (6.94 per cent), edged up to Rs 131.90 (6.78 per cent) and finished at Rs 131.30 (6.83 per cent).

Players tried to compress the spread between liquid and illiquid gilts of the same residual maturity.

Call money rates finished at 5.90-6.10 per cent as against the previous day