Call range-bound at 5.75-5.85%

Call rates ruled in the 5.75-5.85% range. The Reserve Bank of India (RBI) mopped up bids worth Rs 30,310 crore under the reverse repo operations in both sessions of liquidity adjustment. On Friday, the yield on the ten-year benchmark 7.59% 2016 stock rose further from Thursday’s close of 8% to touch a new four-year high of 8.19% in intra-day trades.

Although the yield opened the day at 8.07% levels, heavy selling in securities was witnessed at 8.16-8.17% levels.At the close of the trading session, the yield was at 8.09%, while the total volume of securities traded were nearly around Rs 1,500 crore. Treasury officials explained that with the Friday’s rise in yields, market participants have clearly factored a 25 bps hike in the repo and reverse repo rates expected to be announced by the RBI in its July policy review statement.