Re ends marginally lower at 44.22/$

MARKETS REPORT

The market is expecting a reduction in net public borrowing target by the government for the new financial year.

Prices of government securities moved up by 10-20 paise across maturities but fell during the end of the day owing to profit taking.

The yield on 10-year paper closed at 7.90 per cent.

Short term liquidity was easy with call rates ruling around 6.05 /6.10 per cent.

The RBI absorbed around Rs 23,000 crore from the system, triggering a fear of monetary measures by RBI to tackle its inflationary impact.

Some new generation private banks are raising one-year funds at above 11 per cent.