Calls Rule In A Narrow Range

MONEY MARKET REPORT

The interest rates in the interbank overnight money market ruled in the band of 7.25 per cent to 8.50 per cent. The interest rates, which opened in the region of 8.5 per cent, came down during the day. Money market dealers expect the calls to stabilise in the coming days.

There have not been many deals struck in the term money market in view of the volatility in call rates.

The three-month money ruled cheaper than one-month money. According to the treasury head of a new private sector bank, one-month was available at 10 per cent while three-month money was available at 9 per cent. Because of differences in the rates offered by the borrowers and the lenders, there are hardly any deals being struck.

 

There was some activity reported in the treasury bills segment. Buying interest was witnesses in treasury bills maturing in November-December this year at a yield of 9.20 per cent to 9.25 per cent. The 364-day treasury bill, maturing April 24 1998, was in demand at a yield of 9.35 per cent. The dated securities segment was also active with the trading centred around the newly auctioned security -- the 12.69 per cent 2002. This security was being traded at a premium of 17 to 24 paise.