MONEY MARKET REPORT
Interest rate in the inter-bank overnight money market opened at 8.90-9.10 per cent and ruled in the 8.75-9 per cent range yesterday. Call rates closed slightly higher at around 9.25-9.5 per cent.
The weighted average call rate of the Securities trading Corporation of India (STCI) was 8.84 per cent on a turnover of Rs 1,600 crore. The National Stock Exchange Mibid was 8.62 per cent (standard deviation 0.0359) and Mibor was 8.91 per cent (standard deviation 0.0286).
There was an inflow of Rs 5,065 crore on account of repo reversals but the corresponding outflow at the four day repo of the Reserve Bank of India (RBI) was only Rs 1,000 crore. The apex bank received only one bid at the repo.
The lower amount parked in the repo yesterday, most probably by the State Bank of India, could indicate that the bank was either meeting its cash reserve ratio requirement or planning to disburse funds to the Resurgent India Bonds collecting banks, felt market players.
Trading in the securities market was lacklustre and the 11.55 per cent 2001, 11.98 per cent 2004 and the 12.25 per cent 2008 were traded at par levels. The implied yields on the revised price list put out by the RBI were still way below the market yields.
For instance, the FRB 1999 and the ZCB 2000 are being traded at around one rupee lower than the RBI sale window prices.
