Call rates close at 6-6.10%

Call rates remained range-bound at 6-6.10%. The Reserve Bank of India (RBI) mopped up bids worth Rs 30,990 crore under the reverse repo operations in both sessions of liquidity adjustment.

Bond yields ended higher on Friday as traders squared up their long positions, ahead of a fresh sale slated for the next week.

After the market trading hours, the Reserve Bank of India announced an auction of two dated securities on August 18. The central bank has announced an auction of the 8.07% 2017 paper worth Rs 5,000 crore and the 8.33% 2036 paper worth Rs 3,000 crore.

On Monday, the market is expected to remain subdued in the opening session, following the auction announcement and yields are likely to hover in the 8.10-8.15% range till the auction takes place. The yield of the benchmark 10-year 7.59% 2016 government bond closed at 8.12%, up from Thursday’s close of 8.09%.

“There has been some profit taking at higher levels,” said a treasury official at a state-owned bank. The yield on the benchmark paper has fallen 21 basis points in the last four trading sessions.