Call rates, bond prices close lower

Mumbai, Apr 10 (UNI) Call rates closed lower in the range of 5.50-5.60 per cent compared to the last close of 5.50-5.70 per cent.

However, stray deals were reported at 5.70-5.80 per cent.

On advance covering by banks, the borrowing requirements remained low. Amidst abundant cash surpluses, the twin Gsec auction slated for today is unlikely to impact the liquidity in the banking system.

Gilts opened weak amidst concerns over the possibility of an interest rate hike in the upcoming monetary policy review.

A sharp rise in US Treasury yields on account of robust job growth in March reaffirmed expectations of more interest rate hikes from the Federal Reserve. This hampered the sentiment of the Indian market, which was well evident from the volumes being traded in the market.

The yield on the actively traded 8.07 per cent 2017 rose to 7.58 per cent, its highest in nearly four years, from 7.54 per cent previously.

Gilts are expected to trade subdued. However, amidst ample cash surpluses, the twin auction are expected to sail smoothly.

UNI AR MAZ SKB1920