Call Rates Ease To 10.25 Per Cent

Inter-bank call money rates marked fluctuated between 10.75 and 10.25 per cent yesterday.

The sharp contrast in the upper and the lower end of rates was largely due to easing of the funds position during the course of trading. This was accompanied by moderate demand. The rates, thus, declined sharply in the later part of the day.

In the government securities market, the bulk of trading was limited to the short-dated papers. The 13.62 per cent gilt maturing in was traded for Rs 20 crores with yields varying between 13.36 and 13.37 per cent. The 91-day treasury bill maturing on October 5 was traded for Rs 5 crore, while another three-month paper maturing on November 30 was traded for Rs 10 crore. The yield on the former was computed at 9.5 per cent, while on the latter it was 10.3 per cent.

 

Trading in the commercial paper segment was subdued with rates quoting between around 12.5 and 13 per cent on the one-month paper. Players were waiting for the credit policy, expecting a cut in interest rates. This would augment the flow of funds in the call market. There was, however, some scepticism whether the rate cut would be passed on to corporate clients.