Call rates trade high between 6.65-6.75 pc level, bonds subdued

Mumbai, Oct 16 (UNI) Amidst diminishing money market liquidity, huge borrowings towards auction outflows and fortnightly and festive demands sustained pressure on systemic liquidity.

Call rates traded at levels as high as 6.70-6.80 per cent level and finally closed high at 6.75 per cent level.

RBI in the call money market on Oct 14 transacted Rs 1,555.10 crore at the weighted average of 6.50 per cent.

In the first Liquidity adjustment, RBI transacted Rs 585 crore through two bids at the rate of 6.00 per cent, whereas in the second liquidity auction RBI transacted Rs 2,290 crores through seven bids.

However, RBI did not inject any money through the repo auction.

Gilts, on the other, touched the three month low on rising concerns over inflationary pressures and its impact on short term interest rates. The eleven-year bond (GS 8.07 per cent 2017) traded low at 102.53 and gave a yield of 7.71 per cent.

Today, RBI had fixed the reference rate for the day at Rs 45.46/ US dollar as compared to the previous rate of Rs 45.49 per USD.

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