Call rates up, bonds on a high
Rates on the inter-bank call market closed at 9-9.50% levels. The call market opened at 9% and rates hovered around 9.22% levels.
The central bank infused a total of Rs 15,975 crore through the repo operations under the two sessions of liquidity adjustment.
On the other hand, it mopped up bids worth Rs 15 crore through reverse repo operations.
Bond yields rose to a four-week high as investors braced for fresh supplies and expected the central bank to keep cash on a tight leash. Traders expected a fresh government bond auction to be announced this week.
The RBI's decision to increase the amount of bonds issued to sterilise its currency intervention also made the traders wary.
The yield on the benchmark 8.07% 2017 bond rose for a third successive session, and closed at 8.17%, higher than Friday's close of 8.14 %. Mumbai markets will remain closed on Tuesday and Wednesday for holidays. :SugarwareZ-064:
