Call rates close flat at 5.50-5.60 pc; bonds recover
Mumbai, June 6 (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 9,857.93 crore each, on the weighted average rate of 5.55 per cent.
In the first one day auction in the morning, RBI absorbed Rs 40,875 crore through 33 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 lower reeling under higher than expected fuel price hike. However, they recovered after the auction of Rs 6,000 crore, five-year bond today.
The 11-year 8.07 per cent 2017 bond price closed at Rs 102.00, while the yield declined by one basis point to 7.79 per cent.
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