Call rates to trade high between 6.30-6.70 pc level

Mumbai, Oct 8 (UNI) Call rates ended at 6.40-6.50 per cent at the end of the week and are expected to trade in a soft range on account of improved systemic liquidity next week.

In the combined Liquidty auctions for the week, RBI transacted between Rs 45,000 crore to 60,000 crore at the weighted average of 6.00 per cent.

The RBI did not inject any money through the repo auction.

Gilts could trade weaker on increased scepticism over interest rate direction, reducing odds that the Fed could be inclined to ease rates as soon as early next year.

Strong economic indicators suggest a possible tightening in domestic interest rates, which are expected to weigh on sentiment.

Also twin auctions, global oil prices and liquidity are likely to sway action in the gilts market next week.

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