Call rates hover near repo rate; Bond prices fall on US rate hike

Mumbai, May 11 (UNI) The call money rate closed in the range of 5.50 to 5.60 per cent on the back of enough liquidity in the money market.

In the call money market operations on May nine, the Reserve Bank of India had borrowing and lending worth Rs 10,999.75 crore each at the weighted average rate of 5.55 per cent.

In the reverse repo auctions, the central bank absorbed Rs 61,655 crore through the daily auctions.

In the first one day auction in the morning, the central bank absorbed Rs 35,190 crore through 34 bids received at the rate of 5.50 per cent.

In the second one day auction in the afternoon, the central bank absorbed Rs 26,465 crore through 35 bids received at the rate of 5.50 per cent.

The central bank did not inject any money in the market through repo auctions.

Bond prices fell today due to US Federal rate hike by 25 basis point to five per cent, highest ever since 2001 and marking 16th straight hike in the interest rate.

The 10.25 per cent 2021 bond price ended 20 paise lower at Rs 122.30.

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