Call rate ends firm on tight liquidity

MONEY MARKET ROUND-UP

 "Nationalised banks were continuously selling dollars. Trade almost came to a standstill after they sold," said a dealer at a private bank.  "It was a very dull day today. There was hardly any interest left in the trade as they (RBI) started selling dollars within some minutes after the market opened," said a dealer at a state-run bank.  Corporate bonds: Lusterless trading  Trade was lacklustre today as sellers were few and yields continued to be firm on fears of monetary tightening steps by the Reserve Bank of India due to rising inflation, dealers said.  According to the Fixed Income Money Market And Derivatives Association of India's reporting platform for corporate bonds, around Rs 51.3 crore worth of bonds were traded today as compared with Rs 304 crore on Friday.  Most market participants expect the central bank to take some stern measures to curb inflation, which rose to 11.05 per cent for the week ended June 7.  "Today, there were only few sellers as most traders did not want to book losses in their books. Yields have risen overnight by 30-40 basis points. Market participants preferred to remain cautious," said a dealer with a private bank.  Yields had risen 35-40 basis points Friday after the headline inflation rose to a 13-year high.  Today, Indian Railway Finance Corp's five-year bond were dealt at 10.25 per cent, unchanged from Friday's levels.  State Bank of India's 15-year bonds were dealt at 10.12-10.14 per cent as compared with 9.90-10.00 per cent last week.