Call rates ended sharply lower at 4.25-4.50% at the overnight call money market today due to limited demand amidst ample liquidity on the final session of the reporting period while government bonds were subdued in thin trade, despite a drop in inflation rates.Call rates fell to below 4% towards the fag end of the day on the back of a surfeit of liquidity and scant demand on the last day of the reporting cycle, but a late scramble to cover reserve products pushed up rates to 4.25-4.50% at the close.Call rates opened at 4.25-4.60% and traded for most of the day below the reverse repo rate of 4.75%, as most of the participants had covered their reserve needs in the earlier part of the fortnight, dealers said.Rates normally fall on the notified friday.Banks report their reserve positions to the RBI every alternate friday. The current two-week reporting period ends today and the next follows tomorrow.RBI accepted 53 bids for Rs 41,005 crore at the 3 day fixed rate reverse repo auction today at 4.75%, under the liquidity adjustment facility (LAF).Meanwhile, government bonds ended flat after an attempted rally following a slide in inflation rate to 4.83% for the week ended February 26 from 5.01% last week.Benchmark, 7.38% 2015 stock ended at Rs 105.75 with a yield of 6.62% and the 7.37% 2014 bond edged down to Rs 104.75 from Rs 104.80 yesterday.The 6.65% 2009 gilt was little changed at Rs 101.25, the 7.55% 2010 paper inched up to Rs 104.95/105.10 from Rs 105.00/04 on Thursday and the 9.39% 2011 bond edged up to Rs 114.30/35 from Rs 14.30.32.
