G-Secs edge up, rupee down

Mumbai, Nov 14 | Updated: Nov 15 2005, 06:21am hrs
Government securities inched up on Monday with the bond participants anticipating ease in liquidity crunch that has been prevailing in the market for the past one week. This was expected after the RBI cancelled its treasury bill sales under the market stabilisation scheme (MSS) for the week.

With a yield of 7.12% there was no trading in benchmark 7.38% government stock maturing in 2015. Among the highly traded securities, the popular 7.37% government stock maturing in 2014 ended at Rs 102.505 (yield of 6.97%) as against 102.46 (yield of 6.98) on Friday. While the newly auctioned 7.49% government stock maturing in 2017 closed at Rs 101.58 ruling at yield of 7.28% as against Rs 101.49 (yield at 7.29%) on Friday.

Liquidity still continues to be tight and expected to remain same till the next auction. However positive sentiments was seen in the market with oil trading below $60 per barrel, said a dealer from private sector bank. On the call money front it eased to 6.30-6.40% with tight liquidity in the system. According to RBI, the central bank absorbed Rs 835 crore from its one day reverse repo auction at 5.25%. While RBI injected Rs 1,900 crore in the system at the rate of 6.25%.

After appreciating for the previous two sessions, the rupee ended 0.11% lower at 45.7325/7425 per dollar on Monday as against its previous close at 45.67/68. The fall in the currency was majorly on account of huge dollar purchases by oil firms and importers in the fag end of the trading session.

The rupee touched an intra-day high at 45.59 in morning trade on dollar sales by exporters and some inter-bank dealers. It gave up its early gains to end on a negative note following limited inflows in the domestic market.

The fall in crude prices has not been able to boost the sentiment of the forex investors. This is following investors expectation that Ben Bernanke would continue with Greenspans policy of raising interest rates at a measured pace, said a forex dealer at a private sector bank.

In the forward market, with the 6-month annualised premium payable in April closed at 0.47%, while the 12-month annualised premium payable in October ended at 0.41% on Monday.