Date:13/04/2007 URL: http://www.thehindubusinessline.com/2007/04/13/stories/2007041303970600.htm

Back Call rates close low

Our Bureau

Mumbai, April 12

Call rates closed low on Thursday at 1.75-2.25 per cent against the previous 3.50-3.75 per cent. Excess cash also made its way to treasury bills. The one-year treasury bill which was auctioned on Wednesday at a yield of 7.69 per cent eased to 7.5 per cent on Thursday. Banks tendered excess funds of Rs 51,615 crore to the RBI through the reverse repo window while the central bank accepted Rs 2,999 crore. In the first one-day reverse repo auction, RBI received 25 bids for Rs 28,690 crore while it accepted Rs 1,999 crore.

In the second one-day reverse repo auction, RBI received 21 bids for Rs 22,925 crore while it accepted Rs 1,000 crore. There were no repo bids. The Collateralised Borrowing and Lending Obligation market saw 444 trades aggregating Rs 21,797.80 crore in the 0.10 per cent-3.30 per cent range. Dealers said the surplus cash in the system would be quickly drained out by the hike in the Cash Reserve Ratio, Government security auctions as well as dated security auctions under the Market Stabilisation Scheme.