Call money ends higher at 8.50 to 9 per cent

Mumbai, May 14 (UNI) Call money rates extended its upward move today to close at 8.50-9 per cent, compared to the previous close of 7-7.50 per cent on Friday.

During the day, it touched a high of 9 per cent and a low of 7.50 per cent.

The rate moved up after banks made payments to settle Rs 10,000 crore on bonds auctioned on Friday, dealers said.

The yield on the 10-year bond was 8.15 per cent, lower than Friday's close of 8.17 per cent. The yield had hit a two-week high of 8.18 per cent on Friday.

Bond investors had turned bearish last week as talk of a cut in the statutory liquidity ratio (SLR) from a minimum of 25 per cent gathered pace.

Call rates firmed up, after the auction outflows, but improved eventually, since the liquidity is expected to remain comfortable this week following government expenditure and coupon redemption, traders added.

UNI