Call rates end higher; yields up by 15 bps

Call rates on Monday ended smartly higher at 6.50% as against the previous close of 6.15% at the overnight call money market due to a liquidity crunch. Earlier, the call rates moved in a wide range of 6.20% and 6.50%. Ten-year yields closed nearly 15 bps higher 7.53%.

The markets opened with a 12 bps move in yields at 7.50% before closing 3 bps lower for the day. There were brief periods of buying on account of value buying during the first half from MFs and foreign banks. However, sentiments changed towards the end of the day, with most buyers turning sellers causing yields to move lower. Overall, the curve was witness to flattening, since shorter-end was witness to higher movement in yields compared to the longer tenors.