Calls Dip To 8%, Gilts Traded Heavily

Inter-bank call money rates dipped to 8 per cent yesterday.

Dealers said that the decline in rates was a reflection of the fact that most banks had covered their positions in the first half of the fortnight.

In addition to this, the presence of ample liquidity in the system also served to drive down calls. It is felt that the rates will rule on the lower side for the rest of the fortnight.

In the government securities market, a number of transactions were witnessed in the 364-day treasury bills. The 13.5-per cent 1998 paper also drew a couple of trades.

 

A large number of secondary market trades were recorded in the recently-issued zero-coupon bond.

A deal for Rs 250 crore was transacted in this security at a price of Rs 60.21, thereby indicating that the sale was conducted by a primary dealer (PD).

Since the paper was priced at Rs 60.66 in the auction, it was felt that the PD was offering a part of the commission to banks in the secondary market deals.

A number of other transactions were registered in the zero-coupon bond at prices varying from Rs 60.25 to Rs 60.32. Dealers were of the opinion that most players were keen to offload the security.