Call money ends at 7.70-8 per cent

Mumbai, May 22 (UNI) Call money rates today closed at 7.70-8 per cent as compared to the previous close of 7.75-8.00 per cent.

During the day, it touched a high of 8.25 per cent and a low of 7.70 per cent.

Indian federal bond yields eased today as investors were confident that cash supplies would remain adequate as the Reserve Bank of India (RBI) was not expected to hold an auction of market stabilisation bonds (MSS) this week, dealers said.

The yield on the 10-year bond was at 8.09 per cent, lower than 8.10 per cent at the previous close.

The central bank has been selling MSS bonds since March to absorb cash released by its intervention in the currency market.

The central bank will auction Rs 8,000 crore (US 2 billion dollars) of government bonds on Friday. The cut-off prices would offer clues for the near-term direction of the market, the dealers added.

UNI