Call rates open high at 9.00-9.25 per cent

Mumbai, Apr 30 (UNI) Call rates opened high today at 9.00-9.25 per cent as compared to the previous day's closing of 8.00 to 9.00 per cent.

Liquidity tightened due to outflow towards the last tranche of cash reserve ratio (CRR) hike and auction of dated security held on last Friday, dealers said.

Also due to the excess covering of reserve requirement ahead of the bank holidays, demand for funds accentuated and rates moved up.

Inter-bank rates are likely to trade firm. The continuous liquidity control measures from the Reserve Bank of India (RBI) are expected to keep banks cautious, while lending even if the liquidity situation improves.

Markets will be closed for two consecutive days, beginning tomorrow, on account of public holidays.

Traders are also wary of fresh supplies coming to market. An auction of Rs 10,000 crore of government bonds is scheduled to be held between May 4 and 11.

UNI