Call money

Call rates touched an intra-day high of 8.25 per cent on Monday. Opening at 8-8.15 per cent from its weekend8217;s close of 7.90-8.00 per cent, call rates rose on good demand for funds and went to 8.25 per cent levels by noon. quot;Trades were fairly active.

Outflows from the re-issue of the 11.83 per cent 2014 for Rs 5,000 crore through a price-based auction on January 8 has affected liquidity a bit,quot; a dealer with a Gulf-based bank said. Stray quotes were reported at 8.40 per cent, but dealers said it is unlikely that any deals were struck at these levels. Call rates hovered in the 8-8.25 per cent band through out the day.

Most of the trades were struck between 8.25 per cent and 8.30 per cent. At close, call rates were seen lower at 8-8.10 per cent. quot;There is enough liquidity in the system despite call rates going higher, bond prices at the longer end rose buoyed by the response to the re-issue of the 11.83 per cent 2014.

FORECAST: Call rates seen at 8.20 per cent levels on Tuesday.