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Subdued Trading Seen

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Last Updated : Sep 09 1996 | 12:00 AM IST

Larger FII's are already lining up debt market cells to start business.

Trading, will, however remain moderate this week in the wholesale debt market segment as calls are expected to remain between 5-6 per cent.

At the auction of the 91-day treasury bills on Friday, the cut-off yield of was unchanged at 10 per cent.

The securities likely to be actively traded this week are the 91-day treasury bills, the 13.50-per cent central government security maturing in 1997, the 13.50-per cent central government paper maturing in 1998 and the zero-coupon bond maturing in 1999.

"With call rates likely to remain between 5 and 6 per cent, banks will park their funds in the short term securities," a banker said.

Dealers feel the provident funds will start buying long-term papers from the secondary market. The rates on the certificate of deposits and the commercial papers are likely to remain the same.

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First Published: Sep 09 1996 | 12:00 AM IST

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