Calls Steady As Strike At Rbi Hits Trades

According to dealers, the government securities market was also marked by lack of trading in gilts. Most deals, which were conducted in the market on Saturday, were rolled over for another day.

Dealers said the central bank will do "value dating'' and yesterday's transactions will be put through today.

The bulk of the deals were rolled over at rates varying between 5.5 per cent and 6 per cent, dealers said. However, there may be a mild increase in the call money rates today, largely because yesterday turned out to be a non-working day. "Rates are likely to touch 5.75 per cent-6 per cent today," said a dealer in the money market.

 

Some of the transactions, value today, which took place are those in the 13.5-per cent 1998 security for Rs 10-Rs 15 crore at a price of Rs 101.36. The zero-coupon bond 1999 was reported to be trading at a price of Rs 72.65. One trade worth Rs 25 crore was reported in this gilt at this price, while another was reported for Rs 5 crore at a price of Rs 72.6550.

The latest 91-day treasury bill was traded at a yield of 10.30 per cent. By and large, it was a dull day with regard to the volume of trading in the securities as well as the inter-bank money markets.

In the next few days, it is expected that the rates in the inter-bank money markets will remain stable. There is unlikely to be an increase in the pressure on liquidity this week. This, coupled with the fact that another central government borrowing is on the cards, could exert an upward pressure on the call money rates.