Call Rates Hover Around 6 %

MONEY MARKET REPORT

The interest rates in the inter-bank call money market ruled in the region of 5.5 per cent to 6.75 per cent. Money market dealers pointed out that the most of the deals were struck in the band of 6 - 6.25 per cent.

In yesterdays auction of 91-day T Bills, the cut off price was fixed at Rs 98.05. There was devolvement on the Reserve Bank of India (RBI) to the extent of Rs 11.73 crore and on the primary dealers to the extent of Rs 1.85 crore. The only non-competitive bid, which was to the tune of Rs 400 crore, was fully accepted. In the competitive section, while the RBI recieved 15 bids to the tune of Rs 152.42 crore, it accepted five bids aggregating Rs 86.42 crore.

 

As part of its open market operations, the RBI yesterday announced a revised price list. The RBI has put out the 13.65 per cent 1999, 13.85 per cent 2001, the 14 per cent 2006 and the 12 per cent 2011 in the sale list. In comparison with the earlier price list announced on February 7, 1997, the RBI has brought down the purchase price of the Gold Bonds 1998 from Rs 4,108.55 to Rs 3,960.06 per 10 grams.

The activity in the securities market was centred around the recently auctioned 10- year paper. The cut off yield at the auction was 13.65 per cent.