Call money opens low at 0.50-0.75 per cent

By Staff
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Google Oneindia News

Mumbai, May 4 (UNI) Call money rates stayed low and opened at 0.50-0.75 per cent today as compared to the previous close of 0.30-0.50 per cent.

Outflows lined up for the week via bond and treasury bill sales were not a matter of concern as the extent of excess cash was still huge to cover the scheduled outflows, traders opined.

The government announced a borrowing through Rs 9,000 crore worth bonds on Friday, while the Reserve Bank of India (RBI) announced a sale under the MSS and also increased the amount of treasury bills for sale this week in an attempt to suck out excess cash.

However, LAF auctions showed that the banking system was flush with cash far in excess of the measures announced yet. The reverse repo received bids worth Rs 81,620 crore.

More measures to curb liquidity are expected in the short-term but for now call rates are expected to stay at current historical lows, dealers added.

UNI

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