Call Declines To Around 9%

MONEY MARKET REPORT

Interest rate in the inter-bank overnight money market opened in the 9-9.25 per cent region and ruled in the 8.75-9.25 per cent band. With call rate declining the prices of securities improved.

Realising that call rate had come down, financial institutions apparently bid at the nine per cent fixed rate repos.

The Reserve Bank of India (RBI) got four bids for a sum of Rs 987 crore. Bidders at the fixed rate repos suggests that there could be ample liquidity in the system.

Some suggest that if call rate continues to hover around nine per cent for the next few days, the apex bank might increase the repos rate.

 

The weighted average call money rate of Securities Trading Corporation of India was 9.20 per cent on a turnover of Rs 1,300 crore.

In the treasury bills segment, the 364-day treasury bill maturing on April 10 was dealt in the region of 11-11.75 per cent.

The prices of government securities improved by 50 paise to one rupee.

The 13.50 per cent paper maturing in 1998 was dealt at Rs 100.45, the 12.50 per cent 2004 at Rs 100.50-101.20, the 12.59 per cent 2004 at Rs 101.20-101.85, the 13.62 per cent 1998 at Rs 101.20 and the 11 per cent 2002 at Rs 97.75.