Call rates end flat

The RBI mopped up Rs 9,335 crore through reverse repo operations under the two sessions of liquidity adjustment. Bond prices came of the seven month highs and ended steady, from Monday’s close as investors preferred to book profits after the strong run.

The yield on the benchmark 7.59% 2016 bond ended at 7.38%, unchanged from the previous close. The bond hit an intraday low of 7.36%, its lowest since late April. Traders awaited news of the government’s next auction.

According to the borrowing calender, the government is scheduled to raise Rs 9,000 crore in the first week of December. Bonds prices have steadily risen over the past two weeks on expectations that RBI would not raise interest rates till its next monetary policy review in January.