Call rates close at 5.50-60 pc; bond prices fall sharply
Mumbai, May 15 (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 12, the Reserve Bank of India had borrowing and lendings worth Rs 2956.73 crore each on the weighted average rate of 5.55 per cent.
In the reverse repo auctions, the central bank absorbed Rs 51,246 crore through the daily auctions.
In the first three day auction in the morning, the central bank absorbed Rs 31,980 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 19,265 crore through 30 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 sharply on the back of fall in the global commodity market and stock markets.
The ten year 7.59 per cent 2016 bond price fell by 32 paise to Rs 99.98. The yield went up by five basis point to 7.59 per cent, said a dealer in the bond market.
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