Bonds close higher; call rates end flat (5.50-5.60)

Mumbai, May 19 (UNI) The call money rate closed flat in the range of 5.50 to 5.60 per cent as comfortable liquidity situation prevailed in the money market.

In the call money market operations on May 18, the Reserve Bank of India had borrowing and lendings worth Rs 10,538.29 crore each on the weighted average rate of 5.55 per cent.

In the reverse repo auctions, the central bank absorbed Rs 61,815 crore through the daily auctions.

In the first three day auction in the morning, the central bank absorbed Rs 36,465 crore through 34 bids received at the rate of 5.50 per cent.

In the second three day auction in the afternoon, the central bank absorbed Rs 25,350 crore through 41 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 closed higher despite rise in inflation to 3.96 per cent as compared to 3.56 per cent during the previous week.

The 11 year 8.07 per cent 2017 bond price closed at Rs 102.70 up by seven paise.

The yield closed at 7.69 per cent down by one basis points.

UNI RRP-VS PM SKB1938