Call money rates today closed at 5.85-6.00 per cent as against its previous close of 5.80-5.90 per cent amidst ample liquidity in the market. Prices of government securities at the medium end were up 15 to 50 paise as there were no negative factors hampering sentiment.
Call money, which opened at 6.00-6.15 per cent, touched a high of 6.15 per cent and a low of 5.85 per cent during the course of the day. The quantum of liquidity in the banking system can be guaged from the fact that the central bank received three applications amounting to Rs 12,275 crore. It accepted the three bids partially for Rs 6,138 crore at the cut-off rate of 5.75 per cent. Net inflows today were at Rs 329.50 crore. Inflows were at Rs 7329.50 crore and outflows were at Rs 7,000 crore.
Dealers pointed out that sentiment in the gilts market was bullish as there is no further auction slated this month and liquidity appears to be good. The benchmark 7.40 per cent 2012 paper opened at Rs 99.55 (yield : 7.46 per cent) and edged up to close at Rs 99.80 (7.43 per cent).
The 7.55 per cent 2010 paper, which was auctioned on Monday, opened at Rs 101.45 (7.30 per cent), edged up to Rs 101.66 (7.27 per cent) and was last dealt at Rs 101.60 (7.28 per cent). The actively traded 9.81 per cent 2013 paper opened at Rs 115.84 (7.64 per cent) and jumped by 46 paise to close at Rs 116.30 (7.59 per cent). The other actively traded medium tenor 9.39 per cent 2011 paper opened at Rs 111.55 (7.60 per cent) and gained by 40 paise to close at Rs 111.85 (7.55 per cent).
Call money is expected to hover in the 5.85-6.15 per cent band tomorrow. Prices of government securities could move up by 15 to 20 paise amidst intermittent profit booking.
