Call money remains firm

Mumbai, Feb 19 (UNI) Call money today closed firm at 7.90-8.10 per cent, reflecting the tight liquidity condition in the market after the central bank increased the cash reserve ratio (CRR) to 6 per cent from 5.5 per cent in two stages last week.

Indian federal bond yields rose after a monetary tightening measure took effect over the weekend, reducing surplus cash available with banks to buy debt, market analysts said.

Sentiment was also weighed down after the government said late last week it had issued tradeable bonds worth USD 1.98 billion to 19 state-run banks as part of efforts to restructure their capital, sources added.

UNI