Call money ends flat at 6.00-6.10 pc

Mumbai, Mar 2 (UNI) Interbank call money rates closed flat for the second consecutive day today at 6.00-6.10 per cent, dealers said here.

Comfortable money market liquidity was able to nullify the reporting Friday pressures and easily met the borrowing requirements of the banks.

At the one-day reverse repo window, the Reserve Bank of India (RBI) accepted 47 bids worth Rs 22,420 crore, while no bid was received at repo window.

The CBLO segment saw 328 bids worth Rs 17,650 crore. The bids were transacted in the range of 2.00-6.90 per cent.

On the back of ample supply, inter bank rates are expected to remain soft, dealers said.

Later, the yield on the 10-year bond was at 7.91 per cent, down from the previous close of 7.93 per cent.

Lower inflation has made the market believe the central bank will not tighten rates in the near term.

The government also cut duties on a host of items in its annual budget on Wednesday to check price pressures in a fast-growing economy.

Last month, the RBI announced a two-stage increase in the cash reserve ratio (CRR), the percentage of deposits banks need to keep with it, by 50 basis points, to rein in price pressures.

In January, it had raised its short-term lending rate by 25 basis points to 7.50 per cent, the fourth in this fiscal year ending in March, dealers added.

UNI