MONEY MARKET REPORt
Interest rate in the inter-bank money market ruled around the repo rate yesterday. It opened at 5- 5.05 per cent and closed at 5 per cent - 5.25 per cent, ruling in this range.
The weighted average call money rate of Securities Trading Corporation of India Ltd (STCI) was 5.01 per cent on a turnover of Rs 1,700 crore.
At the three day five per cent fixed rate repos, the RBI received 11 bids for a sum of Rs 1,377 crore. There were no corresponding inflows yesterday on repo reversals.
At a meeting with bankers yesterday, the RBI asked the market to wholeheartedly support the on-tap issues of six year and ten year central government papers open for subscription from June 19, but declined to comment on whether the fixation of a higher coupon than the primary market yields signalled hardening of interest rates.
In the dated securities segment, prices were steady and held at the same levels as Tuesday. The 11.50 per cent 2004 was traded at around Rs 98.65-75, or an yield of 11.79 per cent, the 11.64 per cent 2000 at Rs 100.90-101 levels, the 13.65 per cent 1998 at Rs 100.72 and the 13.70 per cent 1999 at Rs 103.35.
There was some activity in the treasury bills segment. The t-bill maturing on July 25 was dealt at 7.40 per cent, the June 19 t-bills at 5.25 and August t-bills at 8 per cent.
