Call money opens up at 7.90-8 per cent

Mumbai, May 23 (UNI) Call money rates today opened up at 7.90-8 per cent as compared to the previous close of 7.70-8 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. Total volume was just Rs 440 crore (USD 108 million) in the first 50 minutes of trade.

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