Government securities prices, which edged up on most of the trading days last week due ample liquidity and fresh positions for the new quarter, closed a bit lower last week.
In forex, good buying support for three straight days from state-owned banks prevented the rupee from breaching the 48.36 mark per dollar. The rupee ended flat on the last trading day at an eight-month closing high of 48.3600/3625.
That liquidity was comfortable last week is underscored by the fact that at the daily repo auction average bids were in excess of Rs 15,000 crore. Moreover, repo bids were received from many players signifying that liquidity was evenly spread. Call money closed a shade below the repo rate on most of the trading days as demand for funds was slack.
Trading in the gilts market, which was closed on Monday and Wednesday on account of banks