Money market operators said the rates have stabilised and the market was less volatile. They opened at 6 per cent and started moving southwards during the course of the day. It touched 5.25 per cent and anchored at this figure for some time.
"There were few borrowers and lenders operating in the market,'' a dealer said. There was stray interest in the government securities market, it was reported. However, the 13.62-per cent 1998 government paper was transacted in larger volumes yesterday. Some deals were reported at Rs 100.47 and there were some transactions at 100.51. Besides, there were reports of some transactions in the 13.5-per cent 1998 security.
The 91-day treasury bills continued to witness trading in some amounts. A few transactions were there in the 91-day paper maturing on September 7 at 6.5 per cent, and the September 30-paper at 8 per cent. Buying interest in security maturing on October 5 was seen at 8.5 per cent. Sources said rates in the money market are likely to remain at the present levels. "The market has retained stability at these levels,'' said a dealer.
Primary dealers were seen to be offering two-way quotes on the 91-day paper. Most of the quotes were "off- market" ones, said a dealer.
A section of primary dealers, however, said, "the setting up of a primary dealer system alone could not ensure that trading picks up in the government securities market.'' However, there was hardly any interest in the quotes given by the primary dealers.