Call money ends lower at 0.6-0.10 per cent

Mumbai, June 1 (UNI) Call money plunged to a six year low at 0.6-0.10 per cent today, compared to the previous close of 0.50-0.75 per cent.

The call rates touched a high of 2 per cent during the day, but came down to close at 0.6-0.10 per cent on ample liquidity conditions in the market, dealers said According to traders, the government is expected to borrow Rs 9,000 crore via bond auctions between June 1-8 this year.

Indian federal bond yields were little changed on Friday, as ample cash and declining inflation were offset by worries the central bank may act soon to drain cash from the banking system.

Total volume was a normal Rs 1240 crore on the central bank's electronic trading platform.

Overnight rates, an indicator of cash in the banking system, were steady at a seven-year low of 0.50 per cent, the dealers added.

UNI