Call rates close flat at 5.50-5.60 pc; bonds close subdued

Mumbai, May 29 (UNI) The call money rates 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 borrowings and lendings worth Rs 695.50 crore each, on the weighted average rate of 5.54 per cent.

In the first one day auction in the morning, RBI absorbed Rs 33,455 crore through 25 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 opened subdued and the situation persisted for the day trade largely on account of prevalent market conditions, even increased inflation had a role to play in weak opening of the Bonds.

The 11-year 8.07 per cent 2017 bond price closed 30 paise down at Rs 102.40, while the yield increased by one basis point to 7.73 per cent.

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