Bonds prices remain flat; Call rate closes around 5.50 pc

Mumbai, Apr 21 (UNI) The bond prices were flat today with the inflation rate dipping to 3.24 per cent from last week's rate of 3.51 per cent.

''Present bullishness in the bond market is a transient happiness,'' said Mr Indranil Pan, chief economist of Kotak Mahindra Bank. ''The long term trend is likely to be bearish based on high crude oil price and rise in other commodities price,'' he added.

However, crude oil prices softened today to USD 71-72 per barrel level from earlier all-time high of USD 74.35 per barrel, providing some relief to bond market.

Twelve-year 2018 government paper with 7.38 per cent yield closed at Rs 99.95 with a loss of 25 paise.

Call Money rate closed steady near the reverse repo rate of 5.50 per cent as liquidity positions in the money market remained comfortable.

Meanwhile, RBI absorbed Rs 62,075 crore through the one-day reverse repo auctions.

In the first one-day reverse repo auction, RBI absorbed Rs 27,670 crore from the money market through 34 bids received at 5.50 per cent.

In the second one-day reverse repo auction, RBI sucked Rs 34,405 crore from the money market through 31 bids received at 5.50 per cent.

RBI didn't inject any money in the money market through repo auctions.

In the call money market operations on April 18, RBI had borrowing and lendings worth Rs 12,296.84 crore each at weighted average rate of 5.55 per cent.

UNI RRP SA SKB1843