Bond prices end lower amidst liquidity crunch

Mumbai, Apr 4 (UNI) The call rates closed in the range of 6.00-6.20 per cent as liquidity conditions seemed to ease after the closure of the financial year 2005-06.

The Reserve Bank of India received more than Rs 22,000 crore through daily reverse-repo auctions from the money market while it injected only Rs 60 crore in the markets.

In the first one-day reverse repo-auction, RBI absorbed Rs 4,300 crore through eight bids received at 5.50 per cent.

In the second one-day reverse repo-auction, RBI absorbed 17,740 crore through 26 bids received at 5.50 per cent.

In the first one-day repo-auction, Reserve Bank of India (RBI) rejected the single bid for Rs 65 crore at 6.50 per cent.

In the second one-day repo-auction, RBI injected Rs 60 crore through two bids received at 6.50 per cent. In the call money market operations RBI had borrowing and lendings worth 13,165.07 crore each at weighted average rate of 6.33 per cent.

The bond prices ended higher as liquidity crunch seemed to be getting over.

The actively traded 8.07 per cent 2017 bond price ended higher by seven paise at Rs 103.79, while the yield dropped by one basis point to 7.55 per cent.

UNI RRP MJ SKB1900