Call money rises to 7.00-7.25 per cent, bond prices rise too

Mumbai, Mar 20 (UNI) Call money rates closed higher in the range of 7.00-7.25 per cent as compared to Friday's rate of 6.00-6.25 per cent as demand grew in the banking system due to tax related outflows.

Earlier in the morning, call rate opened at 7.10 per cent and touched a high of 7.30 per cent.

In the first one-day repo-auction Reserve Bank of India (RBI) injected Rs 15,090 crore through 23 bids received at 5.50 per cent.

In the second one-day repo-auction, RBI injected Rs 7,935 crore through 17 bids received at 5.50 per cent.

In the first one-day reverse repo-auction, the Central Bank absorbed Rs 120 crore through single bid received at 5.50 per cent.

In the second one-day reverse repo-auction, it absorbed 140 crore through two bids received at 5.50 per cent.

In the call money market operations on March 18, RBI had borrowings and lendings of Rs 1,440.96 crore each at the weighted average rate of 7.09 per cent.

The bond prices gained today.

The actively traded 8.07 per cent 2017 bond price ended seven paise up at 105.03, while the yield came down to 7.38 per cent.

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