Call rates end low

Following the RBI statement on Friday evening, where the central bank capped the daily fund infusion under the reverse repo window to Rs 3,000 crore, there was a huge cash supply in the call market.

Rates in the call money market dropped to as low as 3.5% levels earlier in he day, but closed at 5.5% levels.

Although RBI got bids of over Rs 20,000 crore at the reverse repo, it accepted bids worth only Rs 3,000.

Bonds saw an upward movement. The yield on the benchmark paper moved to cross 8% during the day but ended at 7.94%, unchanged from the previous close.

Late on Friday evening, the central bank announced that it will issue a mix of instruments under the market stabilisation securities scheme to include treasury bills and dated securities in a more flexible manner.