Call money drops to 5.50 per cent, bond rise by 10 paise
Mumbai, Mar 16 (UNI) The call money rate dropped further closing in the range of 5.50 per cent as against the last close at 6.00-6.10 per cent on Tuesday, a dealer in the money market said.
Liquidity conditions seemed to be easing with more than Rs 10,000 crore absorption by the Reserve Bank of India (RBI) in the reverse-repo auction.
Also in the repo-auction Reserve Bank of India (RBI) didn't receive any bid in the morning as well as in the afternoon auctions.
In the first one-day reverse repo-auction Reserve Bank of India (RBI) absorbed Rs 140 crore through one bid received at 5.50 per cent.
In the second two-day reverse repo-auction Reserve Bank of India (RBI) absorbed 10,170 crore through 24 bids received at 5.50 per cent.
In the call money market operations on March 14 (Tuesday), RBI had borrowings and lendings of Rs 10,557.47 crore each at the weighted average rate of 6.22 per cent.
The bond prices gained on back of over Rs 10,000 crore reverse-repo auction at 5.50 per cent by the RBI today during the afternoon auction, said a dealer in the money market.
The actively traded 8.07 per cent 2017 bond price ended 12 paise higher at 104.92, while the yield came down by two basis points to 7.42 per cent.
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