Call money opens lower

Mumbai, Apr 18 (UNI) Call money today opened lower at 11-12 per cent against the previous close of 15-16 per cent yesterday.

The rates had earlier risen following Saturday's increase in reserve requirements for banks that drained an estimated Rs 7,750 crore from the banking system.

The second leg of the increase in the reserve requirements takes effect on April 28. The call money is currently trading at 10-11, dealers said.

Indian bonds were subdued in early trade today as a bond auction and tight cash conditions saw investors happy to stay out of the market.

At 0945 hrs, no trades had been recorded in the benchmark 10-year bond on the central bank's electronic trading platform. The 2015 bond was at 8.18 per cent, unchanged from the previous close.

Further, the Reserve Bank of India will sell Rs 3,000 crore (USD 715 billion) of market stabilisation bonds today.

A Rs 7,700 crore government bond issue matures this weekend and the redemption funds should arrive in the market by next week, which has contributed to ease the concerns about an extended squeeze on cash, dealers said.

The central bank reviews monetary policy on 24 April. It has raised reserve requirements three times since early December and its short-term lending rate twice in 2007 to try to curb inflation.

UNI