Call money rates fall below 7 per cent

Mumbai, Feb 7 (UNI) Call money rates came down below seven per cent to close at 6.75-7.00 per cent from the previous close of 7.85-7.90 per cent on improved liquidity in the market ahead of the RBI's bond auction scheduled to be conducted on February nine.

The Call rates opened at 7.67-7.90 per cent. The rates came down to 6.75-7.00 per cent on improvement of liquidity in the market after the Central Banks reported buying dollars in the market, dealers said.

The call money rates later closed at the lower level of 6.75-7.00 per cent in view of the ample liquidity arrving into the system, a Chief Forex dealer at the State run Bank said.

According to him, the repeated intervention by the Central Bank was reflected into easing of Call money markets ahead of the auction of Rs 9,000 crore of bonds, Rs 6,000 crore of a seven-year bond and Rs 3,000 crore of a 29-year bond, on February 9, 2007, dealers said.

Indian bond yields eased on Wednesday, tracking US Treasuries and as funds availability in the banking system improved, dealers said.

UNI