Call rates trade high at range of 6.50-6.70 pc level, bonds subdued

Mumbai,Oct 18 (UNI) Call rates ended at 6.75-6.85 per cent (pc), against their previous close of 6.65-6.75 pc, having touched 6.90-7.00% levels during the day, money lender said.

Higher demand for funds prompted the overnight funding costs to stay higher throughout the session. Concerns sustained over the dwindling state of liquidity in the system.

At the LAF window, RBI accepted 9 bids worth Rs. 1,165 crore at the 1-day reverse repo auction while no bids were received at the 1-day repo auction.

At the CBLO segment, 384 bids worth Rs. 22,483 crore were transacted in the range of 6.10-6.40%.

Call rates are likely to trade firmer due to rising demand and concerns over systemic liquidity.

Gilts, amidst diminishing cash surpluses, fund requirements, however, continued to be high so as to provide for the fortnightly and festive demand. Thus, call rates traded at levels as high as 6.70-6.80 per cent. However, a rally in US Treasuries helped capped the downside and aided gilts to trade in a range around yesterday's levels.

The eleven-year Bond GS 807 per cent 2017 today traded at Rs 102.38 and gave a yield of 7.73 per cent.

Today, the apex bank had fixed the reference rate for the day at Rs 45.36 per US dollar as compared to the previous rate of Rs 45.46 per USD.

UNI AR PM SKB1926