The Hindu Business Line : Gilts up as CRR worries recede

MUMBAI: G-Sec prices revived on Wednesday following the RBI Governor, Dr Reddy's statements that the medium-term requirement was to reduce the Cash Reserve Ratio (CRR), pacifying all fears of an increase in CRR.

Prices gained by 25-40 paise on thin volumes of Rs 3,000-odd crore.

The 8.07 per cent 2017 paper opened at Rs 123.09 and closed higher at Rs 123.50. The 10-year benchmark, the 7.27 per cent 2013 paper opened at Rs 116.25 and closed at Rs 116.50. The yield on this paper was 5.11 per cent.

There were few takers for funds in the call money market and the rates closed below 4 per cent.

The huge amounts sucked out through the LAF window indicated the surplus liquidity in the system at Rs 20,000-odd crore at the repo rate of 4.5 per cent.

Article E-Mail :: Comment :: Syndication

Stories in this Section
BSE institute to conduct financial markets training

Re yo-yoes against dollar

Re appreciation issue referred to Finance Ministry

SBH net up 45 pc in first half

Can Fin Homes' offer

SEBI draft norms for listing of debt papers

IFC sells part of stake in Orchid Chem

Volumes drop sharply; prices falling
Bond market moves to wait & watch mode

Gilts up as CRR worries recede

RBI bars urban co-ops from unrated securities