Call rates ended Monday at 4.40-4.45%. Opening the day at 4.40-4.50%, call rates were extremely rangebound in dull trades. There was no action. Liquidity is good, a dealer with a private-owned bank said. The central banks move to opt for a status quo on the rate front in the credit and monetary policy announced last week has not affected sentiment. Liquidity is abundant amidst regular borrowing and despite foreign funds repatriating their profits, owing to slack credit demand. Moreover, copious inflows on the back of coupon redemptions kept up the flow of money into the system. Meanwhile, the RBI received 37 bids and mopped up Rs 13,420 crore at the one-day repos auction on Monday at the cut-off price of 4.50% under the liquidity adjustment facility. The National Stock Exchange (NSE) pegged its overnight Mibid and Mibor rates, unchanged at 4.41% and 4.51% respectively.Spot Dollarforward premiums
Forward dollar premiums fell on fresh receipts by corporates. The six month annualised forward cover quoted at 0.41% with the one-year at 0.51%. Premiums fell in early trades, but came up a tad by close on fresh paying interest. On the whole, they eased, a dealer said. Cash/spot premiums finished at 0.25/1.00 paise, while cash/tom deals were not conducted due to tomorrows New York holiday. Month-wise premium in paise were: November -1/0, December 0.50/1.50, January 1.50/2.50, February 3/4 with March at 4.75/5.75. Most Asian currencies perked up today on recent improved economic data and foreign investment inflows to equity markets. The Singapore dollar, supported by the recent strength of data at home and abroad, rose to a one-week high at 1.7380 to the dollar from late Fridays 1.7404. The Thai Baht was steady at 39.89 per dollar, while Philippine peso remained embroiled in domestic political concerns, fell to its lowest in about a week to 55.49.
FORECAST: Forward seen at current levels on Tuesday.
Government security prices staged a late mild rally after remaining subdued in early dealings. Select papers at the medium to longer end edged up by 8-15 paise. The benchmark 10-year yield edged down to 5.06% from 5.07% with the 7.27% 2013 ending higher at Rs 116.85/90 from its last quote at Rs 116.75/80. The 8.07% 2017 rose to Rs 124.85/87 (Rs 124.70/75), the 6.25% 2018 firmed up to Rs 107.48/52 (Rs 107.25/30), the 7.46% 2017 edged up to Rs 119.64/68 (Rs 119.60/65) while the 9.81% 2013 was little changed at Rs 135.35. On the NSEs wholesale debt segment, trades worth Rs 4,750.26 crore were seen in 692 deals. The 7.49% 2017 was traded for Rs 565.00 crore at a weighted yield of 5.44%, the 7.46% 2017 for 445.00 crore (5.42%) and the 6.25% 2018 for Rs 335.00 crore (5.48%). There has been no effect on inter-bank liquidity even after the auction of the Rs 5,000 crore floating rate bond (2012) last Friday by the RBI. Compiled by Raghu Mohan