Call rates range-bound

Rates on the inter-bank call money market closed in a range of 8.25-8.50%, lower than Tuesday's close of 8.75-9%. The central bank infused a total of Rs 20,605 crore through the repo operations under the two sessions of liquidity adjustment. On the other hand, it mopped up bids worth merely Rs 35 crore through reverse repo operations.

The RBI fixed a higher-than-expected cut-off price at the bond auction, volumes almost doubled to Rs 4,400 crore from Tuesday's Rs 2,300 crore, which brought in renewed interest in the market. On Wednesday, the central bank conducted an auction of bonds worth Rs 6,000 crore. Under this programme, the Reserve Bank of India (RBI) sold the 7.55% bond, maturing in 2010, under the market stabilisation scheme. Traders in the bond market were expecting a cut-off yield of around 8.12%, whereas the central bank declared a cut-off yield of 8.07% on the auctioned security. The yield on the benchmark 8.07% 2017 paper, which has been hovering around 8.15%, ended at 8.10%.