Call rates trade high at 6.8-7.0 pc level, bonds high

Mumbai, Nov 02 (UNI) The call rates today closed high between 6.8 to 7.0 per cent level, amidst drifting liquidity positions, dealers said.

Call money rates continued to move up as they opened at 7.00-7.10 per cent this morning.

Though the liquidity situation is expected to improve later on in the month, the current tightness of the same (Only Rs.4575 crore at the LAF window) is ensuring the hardening of call rates.

Additionally, Rs 9,000 crore is expected to flow out of the system tomorrow during the government bond auction.

Amidst demand that is likely to remain moderately high, inter bank rates are expected to go further up by a few bps.

Gilts traded high today, the eleven year bond GS 8.07 per cent, 2017 traded high at Rs 103.00 and gave a yield of 7.64 per cent.

The reference rate was fixed at Rs 44.93/ US dollar compared to yesterdays Rs 45.02 per US Dollar.

UNI AR PM AW1916