Call rates remain flat at 6-6.10%

Rates on the interbank call money market remained steady at 6-6.10%. The Reserve Bank of India mopped up bids worth Rs 34,115 crore under the reverse repo auctions at the liquidity adjustment sessions. Bond prices remained largely unchanged as the yield on the benchmark 7.59% ’16 paper closed at 7.70% even as the yield opened lower at 7.66%.

In opening deals, yields were buoyed by softer oil, absence of new supply, and the buzz that the RBI would not hike domestic rates in its mid-term review in October. Treasury managers said expectations that market liquidity could tighten from mid-September when firms would make tax payments, was likely to make shorter-end bonds less attractive