Call money closes at 7.40-7.75 pc

Mumbai, May 23 (UNI) Call money rates remained steady today and closed at 7.40-7.75 per cent as compared to the previous close of 7.70-8 per cent.

During the day, it touched a high of 7.80 per cent and a low of 7.40 per cent.

Indian federal bond yields rose for the second consecutive day today as investors pared positions ahead of a federal bond auction later this week, dealers opined.

The yield on the 10-year federal bond was 8.13 per cent, higher than the previous close of 8.11 per cent.

The government is borrowing Rs 8000 crore through a twin bond sale on Friday.

Investors were also paring bond positions to buy them back at lower levels later in the week when cash conditions tighten after the bond auction settlement, dealers added.

UNI