MUMBAI, April 12: Gilts: Prices in the government securities market remained stable on Sunday. "Not much activity was witnessed as most of the deals were done on Saturday," market dealers said.Apart from a few nationalised banks, a couple of foreign banks were also buying and selling long-dated securities. According to dealers, long-dated securities maturing in 2007 and short-dated security maturing in 1999 were traded on Sunday.
Some foreign banks were off-loading 13.05 coupon 2007 securities in the market. The wholesale debt segment of the NSE witnessed trades worth Rs 222.95 crore. The 13.05 per cent government loan maturing in 2007 was traded for Rs 92.95 crore at a weighted yield of 11.81 per cent. The 11.10 per cent government loan maturing in 2003 was traded for Rs 35 crore at a weighted yield of 11.10 per cent. The 364-day treasury bill, maturing on July 31, was traded for Rs 35 crore at a yield of 7.90 per cent.
Dealers expect the prices to fall by the end of next week as a result ofcentral government's eight-year paper auction on April 15. "The market is also expecting a CRR cut by the third week of April," said a dealer with a private-sector bank.
Call Money: Overnight call money market wore a dull look on Sunday after opening at 6.75-7.25 per cent level on Sunday compared to Saturday's close of 6.50 per cent. The rates, however, eased in the afternoon to close at 6.5 per cent level at the end of the day. "There were hardly any lenders in the market as most of the banks had transacted for a two-day period on Saturday in spite of Sunday being a working day," market dealers said.
Most of the banks parked their funds at the central banks' repo window, a fund manager said.
"Early-morning borrowers were seen quoting at 6.50-6.75 per cent though most of them went in for RBI three-day fixed rate repo," said a dealer with a private-sector bank.
Spot Dollar: The rupee, on Sunday, opened a paise higher at 39.51-52 against the dollar compared to its previous close of39.49-50 and ended at the same level witnessing a quite and dull trading at the interbank foreign exchange market. Sunday being a weekly holiday, the forex market witnessed very thin trading with small amount of buying and selling of rupee and dollar only. The rupee opened at 39.51-52 per us unit and remained unchanged at the fag end, dealer with a nationalised bank said.
Forward Premiums: There was no trading in forwards on Sunday as the New York market was closed for the weekend, a leading forex dealer said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
