GILTS & BONDS MARKET
With the financial year drawing to a close, trading in securities is expected to remain lacklustre this week. Banks are also not expected to pick up more than what is required for meeting their statutory liquidity ratio (SLR).
Call rates are expected to range between 3 and 6 per cent during the week in the money markets this week, while liquidity in the system is likely to remain easy as advance tax outflows will take place only during the following week.
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The inter-bank call rate opened in the range of 6.75-7 per cent on Saturday and closed in the range of 5.25-5.5 per cent. The market witnessed trades worth Rs 70 crore on the same day. While the 13.40 per cent 1999 government loan was traded for Rs 15 crore at 12.79 per cent, the 364 day T-bill maturing on July 18, 1997 was traded at 9.60 per cent. The zero per cent 2000 government bond was traded at 13.28 per cent.
The total traded volumes in the wholesale debt market last week stood at Rs 636.77 crore, which was much lower than the total traded volumes of Rs 1,083.64 crore in the previous year. The average traded volume last week was Rs 106.96 crore .