Date:12/06/2007 URL: http://www.thehindubusinessline.com/2007/06/12/stories/2007061201560600.htm

Back Call rates close at 3-3.25%

Our Bureau

Mumbai, June 11

The inter-bank call rates rose from its week-long low of 0.2-0.75 per cent to close at 3-3.25 per cent on Monday against the previous close of 0.25-0.35 per cent backed by the announcements of government securities and Treasury bills auctions by the Reserve Bank of India to suck out surplus liquidity from the system. "There will be an outflow of Rs 5,000 crore from the Treasury bills auction today and about Rs 18,000 crore will be sucked out by way of other auctions this week," said a dealer with a private bank. The Reserve Bank of India received bids worth Rs 54,005 crore from the banks under the two sessions of the Liquidity Adjustment Facility through the reverse repo window, while it mopped up bids worth Rs 2,997 crore. The central bank did not receive any bids through the repo window.

In the first one-day reverse repo auction, the RBI received 27 bids for Rs 26,120 crore while it accepted Rs 1,994 crore. In the second one-day reverse repo auction, the RBI received 26 bids for Rs 27,885 crore while it accepted Rs 1,003 crore. There were no repo bids in the first and second one-day auctions. The CBLO market saw 387 trades aggregating Rs 34,144.55 crore in the 0.02-2.4 per cent range.