Call money closes low at 4.50 to 4.75 per cent

Mumbai, May 8 (UNI) Adequate cash position helped call money rates to settle lower at 4.50-4.75 per cent today as compared to the previous close of 6.25-6.50 per cent on Monday.

During the day, it touched a high of 6.50 per cent and a low of 4.50 per cent.

Cash supply was boosted due to the government spending and inflows towards redemptions and coupon payments, which aided the rates, dealers said.

However, the available fund is sufficient to absorb the Market Stabilisation Scheme (MSS) auction and twin GOI bond auction.

At the LAF window, the RBI received 28 bids worth Rs 28,595 crore.

At the 1-day reverse repo window, it accepted only Rs 3,000 crore while 1 bid for Rs 30 crore was received at the 1-day repo window.

In the CBLO segment, 442 bids worth Rs 21,111 crore were transacted in the range of 2.03-5.25 per cent.

Inter bank rates are expected to soften due to comfortable cash supply in the banking system, dealers added.

UNI