Call rules in 5.5-5.6% range

Rates at the inter-bank market ruled unchanged at 5.50-5.60% levels. RBI mopped up bids worth Rs 67,110 crore in reverse repo operations under the liquidity adjustment facility.

Yields in the domestic bond market inched up by another 3 basis points to hit new four-year highs on Thursday, with the yield on the benchmark 7.59% 2016 paper ending at 7.68 % on Thursday, up from the previous close of 7.65%.

After having opened the day at 7.6758%, the yield on the benchmark paper declined to 7.6655% and then rose to touch 7.6772% with the price falling to Rs 99.39.

Traders in the bond market had anticipated that RBI would announce the auction of the 7.40% 2012 paper and accordingly built up positions.

However, their expectations were belied when the central bank announced the auction of the 9.39% 2011 paper.

The Centre would be raising Rs 10.000 crore from the bond market on Tuesday. Of this, Rs 6,000 crore will be raised by auctioning the 9.39% bonds maturing in ’11 and the balance through a new bond maturing in ’36, RBI said.