Call Rates Rule In 5-6% Band

MONEY MARKET REPORT

It was reporting Friday yesterday and banks would have covered their requirements. So demand for funds was on the lower side while supplies were forthcoming from the Industrial Development Bank of India and Life Insurance Corporation of India.

After sky rocketing to 50 per cent on Thursday, call rates yesterday opened in the 10 per cent region, ruled in the five-six per cent band and closed at 2-3 per cent. According to a primary dealer, there were some stray deals struck at one per cent.The weighted average call money rate of STCI was 3.67 per cent on a turnover of Rs 1,800 crore. The Mibor was 6.18 per cent.

 

At the three-day seven per cent fixed rate repos, the RBI received one bid for Rs 16 crore which it accepted. There was wide difference between the bid and offer rates for 3-day money in the inter-bank money market and deals were not struck.

In the treasury bills segment, the 364-day treasury bill maturing in October 1998 was quoted in the 10-10.25 per cent region.

Among dated securities, the 12.59 % paper maturing in 2004 was dealt at Rs 106.35, the 12.14 per cent 2000 at Rs 102.40-102.50, the 12.50 per cent 2004 at Rs 105.75, the 11.83 per cent 2003 at Rs 102.35-102.50 and the 13.70 % security maturing in 1999 at Rs 104.80.