Call rates hover at 5.50-5.60 pc; bonds to be under pressure

Mumbai, June 4 (UNI) Call rates hovered in the range of the reverse repo rate of 5.50 to 5.60 per cent throughout the week and are likely to maintain the trend due to comfortable liquidity situation.

In the daily reverse repo auctions, the Reserve Bank of India absorbed money in the range of Rs 60,000-65,000 crore during the week.

The bonds were volatile throughout the week on inflationary pressures. With inflation touching 4,74 per cent mark, the prices are expected to trade low in the coming week. Also the apprehension over the auction of Rs 10,000 crore Bond yesterday, led to the subdued performance of the bonds and the situation is likely to persist for the coming week.

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