Call rates range-bound; yields rise

Call rates traded in the range of 6.10-6.20%. RBI mopped up bids worth Rs 1,590 crore under the reverse repo operations in the first session of liquidity adjustment, while it absorbed bids worth Rs 16,875 crore later in the day.

ond prices fell after data showed that the economy grew at a faster-than-expected pace in the previous quarter, bolstering expectations the central bank would raise interest rates to check price pressures. The yield on benchmark 10-year bond ended at 7.43 %, up from Wednesday’s close of 7.40%.

Sentiment turned cautious after Indian finance minister Palaniappan Chidambaram said he was “worried” about slightly higher than expected inflation, although he added the government was confident of taming prices.