Call rates trade high bet 6.70 - 6.95 pc level, bonds subdued

Mumbai, Oct 20 (UNI) Call rates today opened at 6.95 and finally closed at 7.1 per cent level amidst declining liquidty position.

The RBI, yesterday transacted Rs 17,528.04 crores at the weighted average of 6.88 per cent in the call money market.

In the first liquidity adjustment today, RBI transacted Rs 25 crores through one bid at the rate of 6.00 per cent, whereas in the second liquidy auction, RBI transacted Rs 80 crores through four bids at a weighed average of 6.00 per cent.

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

Gilts yields opened flat amidst increasing anxiety ahead of the Fed's policy meet scheduled to be held on the 24/25th of October, besides, the strains on systemic liquidity were well evident from the inter-bank rates that were trading at levels close to the repo rate.

The eleven year bond (GS 807 per cent 2017) today traded at Rs 102.45 and gave a yield of 7.72 per cent.

The RBI fixed the reference rate for the day at Rs 45.31 per US Dollar compared to Rs 45.32 per US Dollar yesterday.

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