MONEY MARKET REPORt
The interest rates in the inter bank overnight money market opened in the region of 4.5 per cent - 5 per cent, ruled in the band of 2.5 per cent - 3 per cent and closed in the band of 3.25 per cent - 3.50 per cent.
The weighted average call money rate of Securities Trading Corporation of India was 3.36 per cent.
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The market was flush with funds subsequent to the Rs 1,200-crore infusion on account of the 0.25 per cent cut in the CRR and over Rs 4,000-crore inflow on account of maturing of the 14 day T bills. However the Reserve Bank of India is expected to mop up a substantial amount of liquidity at the repos auction.
The prices of government securities moved up marginally in the morning on account of easy liquidity. But the gains were neutralised by the end of the day since players realised that the Reserve Bank would draw a good response at the repos auction.
At the shorter end, the 12 per cent 1999 was traded in the region of Rs 104.74 and the 10.85 per cent 2001 was traded at Rs 102.95. Among other securities, the 12.59 per cent 2004 was traded in the band of Rs 109.20 - Rs 109.40, the 12.50 per cent 2004 at Rs 109.10 and the 11.19 per cent 2005 in the band of Rs 102.50 - Rs 102.65.