Call rates at 5.50-5.60 pc, bond prices close higher

Mumbai, May 23 (UNI) The call money rate today 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 yesterday, Reserve Bank of India (RBI) had borrowing and lendings worth Rs 10,766.80 crore each on the weighted average rate of 5.55 per cent.

In the reverse repo auctions, the central bank absorbed Rs 67,390 crore through the daily auctions.

In the first one day auction in the morning, RBI absorbed Rs 37,850 crore through 32 bids received at the rate of 5.50 per cent.

In the second one day auction in the afternoon, the bank absorbed Rs 29,540 crore through 41 bids received at the rate of 5.50 per cent.

RBI did not inject any money in the market through repo auctions.

The bond prices recovered due to recovery in the stock market.

The result of the auction of Rs 5,000 crore 15 year bond went on as per expectations, with cut-off yield at 7.94 per cent, a RBI release said.

The 11-year 8.07 per cent 2017 bond price closed two paise up at Rs 102.72, while the yield closed unchanged at 7.69 per cent.

UNI VS-RRP GK VKG1806