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Call money rates fell to an over two-week low on Tuesday because of comfortable liquidity due to bond maturities earlier this month to the tune of nearly Rs 90,000 crore. The weighted average rate (WAR) call money rate stood at 6.96 per cent on Tuesday compared with Monday's 7.09 per cent. The WAR stood at 6.91 per cent on May 30, 2015.
ALSO READ: Call money rates shoot up to 15% intra-day
"There were two bonds which matured earlier this month which were 6.49 per cent 2015 and 7.17 per cent 2015 and this helped the liquidity situation," said S Prabhu, head of fixed income at IDBI Federal Life Insurance. The call money rates are now below the repo rate which stands at 7.25 per cent. Excluding Saturdays, call money rates had fallen to these levels on July 8, 2013, when the WAR stood at 6.91 per cent.
ALSO READ: Call money rates shoot up to 15% intra-day
"There were two bonds which matured earlier this month which were 6.49 per cent 2015 and 7.17 per cent 2015 and this helped the liquidity situation," said S Prabhu, head of fixed income at IDBI Federal Life Insurance. The call money rates are now below the repo rate which stands at 7.25 per cent. Excluding Saturdays, call money rates had fallen to these levels on July 8, 2013, when the WAR stood at 6.91 per cent.
