Call rates trade at 5.75-5.85 per cent

Mumbai, July 12 (UNI) Interbank call money rates closed at 5.75-5.85 per cent, unchanged from their previous closing levels, dealers said.

Stray deals were reported at 5.80-5.90 per cent. Borrowing requirements were smoothly facilitated by fund supplies in the system.

At the LAF window, RBI accepted all the 56 bids worth Rs 43,110 crore at the 1-day reverse repo auction while no bids were received at the 1-day repo auction.

At the CBLO segment, 310 bids worth Rs 18,231 crore were transacted in the range of 5.49-5.90 per cent.

Call rates are likely to remain in a soft range on sufficient liquidity in the system.

Corporate bond yields were largly steady as the market braced up for a fresh issue. Gilt yields touched their fresh four-and-a-half year lows, narrowing the credit spreads.

Spreads narrowed by 2-6 bps across the curve, the only exception being the 1-year segment where spreads widened by 5 bps.

The RBI is scheduled to raise Rs 7,000 crore on behalf of the government as a part of its regular market borrowing programme. The market is expecting the yield to be in the range of 8.30-35 per cent. The cut-offs set at the auction are likely to decide the further direction of yields, dealers added.

UNI AR MAZ SKB1812