Call rates range-bound
Rates on the inter-bank call market came of the nine-year high of 20% hit on Friday and ended the day in a range of 8-8.5%.
By TNN |
Rates on the inter-bank call market came of the nine-year high of 20% hit on Friday and ended the day in a range of 8-8.5%. The central bank infused a total of Rs 17,995 crore through the repo operations under the two sessions of liquidity adjustment.
On the other hand, it mopped up bids worth Rs 11.365 crore in the afternoon LAF session through reverse repo operations. Prices of government bonds rose by nearly 60 paise on the first trading session of 2007. The market witnessed a significant improvement in the sentiment as players drew comfort from better liquidity conditions and expectations of buoyant SLR demand from banks.
On Tuesday, the market saw a recovery by almost 50%. However, treasury officials said that the market is likely to experience a slowdown prior to the auction to be held next week. The price of the actively-traded 8.07% 2017 paper rose by 50-60 bps to end the day at Rs 103.78, while the yield dipped to a three-week low of 7.53%, down from the previous closing of 7.62%.
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