Call rates at 6.30-6.40 pc; bond prices fall
Mumbai, March 1 (UNI) The call rates closed lower in the range of 6.30-6.40 per cent, as compared to yesterday's close at 6.50-6.60 per cent.
At the one-day repo auction, the Reserve Bank of India injected Rs 1,325 crore through seven bids received at 6.50 per cent rate, as per the data released by the apex bank.
In the second one-day repo auction, RBI injected Rs 3,480 crore through seven bids received.
The central bank absorbed Rs 880 crore through four bids received in one-day reverse repo auction at the rate of 5.50 per cent.
In the call money market, RBI's borrowings and lending on Monday were of Rs 10,404.61 crore each at weighted average rate of 6.64 per cent.
Bond prices fell today following the news that Government may borrow in the month of March, also the month being the year end for the fiscal 2005-06, not much investments were expected, said a dealer in the money market.
Liquidity problems also had an adverse impact on the bond prices The actively traded 8.07 per cent 2017 bond price fell by 20 paise to Rs 104.85 as against the last price of Rs 105.05. Its yield ended higher at 7.41 per cent.
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