Call rates end higher at 6.60-6.80 pc, bond prices fall

Mumbai, Mar 6 (UNI) The call rates closed above the repo rate closing at 6.60-6.80 per cent as compared to 6.50-6.70 per cent on Friday, said a dealer in the money market.

At the one-day repo auction, the Reserve Bank of India (RBI) injected Rs 9,110 crore through 20 bids received at 6.50 per cent rate, as per the data released by the apex bank.

At the second one-day repo auction, the RBI injected Rs 3,535 crore through nine bids received at 6.50 per cent rate.

At the one-day reverse repo auction RBI absorbed Rs 135 crore through three bids received.

In the call money market, central bank's borrowings and lending on Saturday were of Rs 486.79 crore each at weighted average rate of 6.37 per cent.

Bond prices were down today due to the rising cash crunch and uncertainty arising out of the pending government notice on auction of bonds, which was due now.

The actively traded 8.07 per cent 2017 bond price dropped by 23 paise to Rs 104.34, while the yield rose up to 7.48 per cent from 7.45 per cent.

The 7.37 per cent 2014 bond price ended at Rs 99.90 with the yield inching up at 7.38 per cent.

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