MONEY MARKET REPORt
The interest rates in the inter-bank overnight money market ruled in the band of 7 per cent to 7.5 per cent. Day before yesterday at the repos auction Reserve Bank of India (RBI) mopped up Rs 2,000 crore. This has reduced the excess liquidity in the banking system subsequent to the release of around Rs 5,000 crore on account of maturing of 14 day treasury bills at the beginning of this week.
In keeping with the trend there was not much activity in the treasury bills segment. There was a partial revival in the activity in the dated securities segment day before yesterday. The spurt in traded volumes came after a prolonged period when the average daily volumes had plunged from an average of Rs 600 crore a month earlier to around Rs 100-150 crore.
However yesterday the sentiments in the market was dull and there was not much activity. The 12.59 per cent was traded in the region of Rs 104.40 - 104.60.
Among other securities the 10.85 per cent 2001 was traded at a discount of 30 paise, the 12.14 per cent 2000 at Rs 103.40.
The sellers were quoting the 11.15 per cent 2002 at par while buyers were hoping to pick it up at a discount. There was some activity in the 12.50 per cent 2004 at a price of Rs 104.10 - Rs 104.20.
