Call rates, gilts likely to ease

Last week, call rates closed at 6.40-6.50% as against their previous week’s closing level of 7.40-7.60%. Borrowing requirements to meet the mandatory reserve targets remained high early in the week but improving supplies met the same.

Improvement in liquidity was evident from the RBI LAF reverse repo subscriptions. The average daily subscriptions at the reverse repo auction rose to Rs 24,971 crore from Rs 14,698 crore in the previous week. No bids were received under the repo auction.Call rates could ease with improvement in liquidity.