Call money firms up at 8.75 pc on tight cash condition

Mumbai, May 15 (UNI) Interbank call money today opened at 8.75-9 per cent from previous close of 8.50-9 per cent, brokers said.

Indian bond yields inched up on Tuesday in tight cash conditions, with sentiment subdued ahead of an auction of Rs 6000 crore of market stabilisation bonds due on Wednesday.

During this morning session, the yield on the 10-year bond was at 8.16 pc, a notch higher than Monday's close of 8.15 pc.

Wednesday's auction will keep available cash tight following the settlement of 100 billion rupees of bond sales on Monday, and that is expected to limit demand for debt.

Reflecting the lack of available cash in the market, the central bank lent Rs 16,500 crore to banks on Monday, compared with Rs 180 crore in the whole of last week.

The central bank bought USD 2.3 billion in intervention in March, taking its dollar purchases to billion since the start of November 2006. It bought a record .9 billion in February alone, dealers added.

UNI