Call rates at 5.50-60 pc; Bonds recover partially after fall

Mumbai, May 12 (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 11, the Reserve Bank of India had borrowing and lending worth Rs 10,751.54 crore each at the weighted average rate of 5.56 per cent.

In the reverse repo auctions, the central bank absorbed Rs 49,845 crore through the daily auctions.

In the first three day auction in the morning, the central bank absorbed Rs 21,990 crore through 30 bids received at the rate of 5.50 per cent.

In the second one day auction in the afternoon, the central bank absorbed Rs 27,855 crore through 46 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 recovered after a sharp intra-day fall, but the closing was lower for the second consecutive day since the hike in the US Federal Reserve rate by 25 basis point to five per cent.

The ten year paper yield (7.59 per cent- 2016) dipped to 7.52 per cent in the morning as compared to the last close at 7.55 per cent.

The ten year bond yield finally closed at 7.54 per cent at a price of Rs 100.30, said a dealer in the bond market.

UNI RRP-VS PM SKB1924