Call money jumps up, opens at 7.50-8.00 per cent

By Staff
|
Google Oneindia News

Mumbai, May 14 (UNI) Call money opened at 7.50-8.00 per cent today from one-month low of 2.25-2.50 per cent on Friday.

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

At 0950 hrs, the yield on the 10-year bond was at 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 may briefly firm up, after the auction outflows, but will improve eventually, since the liquidity is expected to remain comfortable this week following government expenditure and coupon redemption, traders opined.

UNI

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