Call money eases sharply at 6.25/635 per cent

Mumbai, Nov 22 (UNI) Interbank call rates dropped to end at 6.25-6.35 per cent, against their previous close of 6.65-6.75 per cent even as most of the deals took place at 6.40-6.50 per cent levels, dealers said.

Moderate funds demand and increased government spending helped to further improve the state of systemic liquidity. As a result, money market rates eased during the day.

At the LAF window, RBI received 20 bids worth Rs 23,560 at the one-day reverse repo auction against Tuesday's 16 bids worth Rs 12,075 crore. No single bid was received at the one-day repo auction.

At the CBLO segment, 338 bids worth Rs 19,170 crore were transacted in the range of 5.99-6.20 per cent.

Residual demand for funds ahead of the reporting day would exert some pressure on call rates. However, the rates are expected to trade in a soft range on good liquidity support, traders added.

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