Calls Remain Range-Bound

MONEY MARKET REPORT

The inter-bank call money market opened high at 9.75 per cent yesterday.

Money market dealers said most of the deals were struck in the range of 9.5 per cent to 9.75 per cent. However, the rates came down to 8.75 towards the close with stray deals reported at 8.5 per cent .

Calls are expected to open at eight per cent tomorrow and taper off during the day.

In the government securities, action was mainly focused on 12.14 per cent 2000 and 12.59 per cent 2004. The former was traded at 80-90 paise premium and 12.59 fetched a premium of 40 paise for most part of the day. A few deals were reported in the 13.05 per cent 10-year paper maturing 2007 at 12.56 per cent yield.

 

The activity in the T-bills segment remained dull and a few April 1998 maturity bills were exchanged at 8.82 per cent yield. "Since there is a lot of activity in the other securities, viz the newer issues , treasury bills have not merited much attention " said a source with a primary dealer.

The repo auction will suck out only Rs 250(confirm) crore at four per cent from the market. The money market has already reacted with an increase of nearly 10 paise in the value deals done late yesterday.