Call rates steady at 6-6.10%

Rates on the interbank call money market remained steady at 6.00-6.10%. The Reserve Bank of India mopped up bids worth Rs 44,670 crore under the reverse repo auctions at the liquidity adjustment sessions as compared to Rs 44,155 crore absorbed on Friday.

Yields in the government bond market on Monday remained largely range-bound, anticipating an auction announcement. Treasury managers explained that after the market closed, the RBI has announced the auction of two dated securities, viz.. the 7.59% 2016 government stock and the 9.39% 2011 paper for Rs 9,000 crore.

Treasury managers expect some selling in Tuesday’s trading session as a reaction to the auction announcement. The yield on the benchmark 7.59% 2016 paper closed at 8.24% as compared to Friday’s close of 8.26%.