Call rates to trade high between 6.30 - 6.70 pc level

Mumbai, Sept 24 (UNI) Call rates ended at 6.40-6.60 per, higher than their previous close of 6.30-6.40 per cent at the end of the week.

Stray deals were reported at levels as high as of 6.70-6.80 per cent, as systemic liquidity remained an area of concern due to which the call money rates maintained an upward bias throughout the trading session.

It is expected that with liquidity concerns in the system would ease out, call rates are likely to trade soft in the coming week.

In the combined Liquidty auctions for the week RBI transacted between Rs 30,000 crore to 40,000 crore at the weighted average of 6.00 per cent.

RBI did not inject any money through the repo auction.

Following previous week's correction, gilts shuffled to their highest levels in four month on growing perception of benign interest rates. And with reduced policy uncertainty, easing oil prices, improving liquidity and softer inflation gilts, market is expected to sustain the current momentum. But with the RBI Governor's remarks that there was no direct link between interest rates in the US and India, thus indicating that any change in domestic interest rates were a more dependent on domestic factors would continue to influence short-term rates. The H2 borrowing calendar is the most awaited release this week.

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