Call rates to trade high, gilts may slide further

Mumbai, Oct 1 (UNI) Call rates closed at 7.60 per cent level, higher than their previous close of 6.40-6.70 per cent at the end of the week, with stray deals reported at levels as high as 7.8 per cent over concerns of systemic liquidity.

It is expected, as liquidity concerns in the system would ease out, call rates would trade soft once again. However, it is unlikely to happen next week.

In the combined Liquidty auctions for the week RBI transacted between Rs 45,000 crore to 55,000 crore at the weighted average of 6.00 per cent.

RBI did not inject any money through the repo auction.

Gilt prices are likely to be affected by few determinants like the liquidity scenario post advance tax payments, strong credit growth and the long awaited H2 government borrowing calendar.

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