Call money opens at 5.75-6 pc

Mumbai, May 29 (UNI) Call money today opened at 5.75-6 per cent, reflecting easy cash condition in the banks.

The Indian federal bond yields rose today as investors were wary that the Reserve Bank of India (RBI) may raise cash reserve requirement for banks to drain cash, dealers said.

The yield on the 10-year federal bond was at 8.08 per cent, up from the previous close of 8.06 per cent. It had hit a one-month low of 8.03 per cent yesterday.

There were inflows of Rs 20,000 crore (US 5 billion dollars) into the banking system after redemption of the 11.90 per cent bond yesterday.

Market expected cash supplies to rise this week, if the central bank intervenes in the currency market. It is suspected to have sold rupees yesterday to check the domestic unit's gains, after it hit a nine-year peak of 40.28 per dollar yesterday.

Investors speculated that the apex bank could announce an issue of market stabilisation scheme (MSS) bonds later this week to absorb the inflows, dealers added.

UNI