Mumbai, Apr 16 (UNI) Backed by surplus liquidity call money rates ended at 5.50-5.60 per cent on Thursday.
The Reserve Bank of India absorbed Rs 57,050 crore at the 4-day reverse repo auction at 5.50 per cent whereas no bids were received at the 4-day repo auction.
Call rates are likely to trade soft on account of surplus cash reserves in the banking system.
Bonds traded in the range on Thursday ahead of a long holiday.
Rise in crude oil prices on account of political tensions brewing in Iran also led to thin activity.
Lower inflation rate was a comforting factor for the bond market.
RBI's monetary policy to be announced on April 18 is likely to lift the sentiments in bond market, which is expecting a 25 basis point hike in the reverse repo rate.
Yield on the newly traded 7.59 per cent 2016 rose marginally to 7.56 per cent from 7.55 per cent, while yield on 8.07 per cent 2014 rose to 7.60 per cent from its previous closing level of 7.57 per cent.
''Bonds are expected to move in a narrow range ahead of the monetary policy on April 18. Crude oil prices and inflation would also be watched,'' said an analyst.
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