Call Declines On Auction News

MONEY MARKET REPORT

Government securities were on a roller-coaster ride yesterday _ prices rose by over 10 paise in the morning, but saw a turnaround towards close in sympathy with the weakening rupee and in reaction to the announcement of a government loan auction for Rs 3000 crore on August 13.

There was some buying interest again in the evening but value-tomorrow deals have been struck at lower levels, said dealers. The initial rise in prices also saw active buying from the Reserve Bank of India (RBI) sale window _ especially the six and nine-year papers. Till Monday, the RBI had sold around Rs 600 crore of the 11.95 per cent 2004 paper through open market operations. There was also trading in other six-year papers _ the 12.5 per cent 2004 and the 12.59 per cent 2004 at around five basis points lower than that offered by the RBI.

 

The call rate opened at 5.90-6 per cent and ruled between 5.70-5.90 per cent yesterday, closing at around the same levels. The weighted average call rate of the STCI was 5.77 per cent on a turnover of Rs 1,900 crore.

At the RBI three-day fixed rate repo, no bids were received, against an inflow of Rs 395 crore on account of repo reversals. The 11.55 per cent 2001 which was traded at Rs 100.40-41 in the morning fell to Rs 100.28 levels. The 11.68 per cent 2002 was traded up to Rs 100.38.