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Illiquid Gilts Gain Currency, Call Floats In Lower Plane

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BUSINESS STANDARD
Last Updated : Jan 28 2013 | 12:54 AM IST

Call rates closed today in the 5.75-5.85 per cent band as against the previous close of 5.75-6.00 per cent amid abundant liquidity in the interbank call money market. Market participants cornered illiquid gilts to leverage yield differentials. Prices of these securities rose by 25-55 paise. Call rates opened at 5.80-6.00 per cent. It touched a high of 6.05 per cent and a low of 5.75 per cent.

The Reserve Bank of India (RBI) received 11 bids amounting to Rs 19,180 crore in the one-day repo auction. It accepted all the 11 bids partially for Rs 15,344 crore at the cut-off rate of six per cent. Net outflows from the banking system amounted to Rs 2,681 crore. While inflows were at Rs 12,663 crore, outflows were at Rs 15,344 crore.

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