Call rate maintains steady level
Saturday, 9 June 2007
Sarwar Zahan
The inter-bank call money rate maintained a steady level in an active market. The central bank managed the market to keep it stable by withdrawing lower amounts of cash through auctions of reverse repurchase agreement (repo), treasury bills and Bangladesh Bank (BB) bills and government bonds, fund managers said.
The call rate moved mainly between 6.60 per cent and 10.00 per cent against the previous week's range between 6.50 per cent and 10.00 per cent. In most deals, the rate moved between 6.80 per cent and 7.50 per cent against the previous week's range between 6.60 per cent and 7.50 per cent.
The call rate moved above the bank rate of 5.00 per cent throughout the week that reflected a higher-than-expected pressure on liquidity.
The rate rose to its high at 10.00 per cent coinciding with the previous week's peak. The rate moved above the main trend due to some stray transactions.
The central bank withdrew only Tk 2.44 billion from the market in the week through reverse repo auction at an interest rate of 6.50 per cent per annum against the previous week's about Tk 40.70 billion.
Besides, it drained out Tk 400 million conducting auction of 30-day Bangladesh Bank bills at an annual interest rate of 7.38 per cent.
The central bank also withdrew Tk 2.35 billion against Bangladesh Bank Treasury bonds at interest rates varying between 12.08 per cent and 12.19 per cent per annum.
This influenced the call rate to move above the main trend of the market. The government borrowed Tk 7.00 billion Sunday through auctions of treasury bills. This caused withdrawal of Tk 7.00 billion from the market.
Bidders offered Tk 4.00 billion Tk 2.00 billion and Tk 637 million against 28-day, 91-day and 364-day bills respectively. The central bank accepted all the bids. The ranges of the implicit yields against the accepted bills respectively were 7.32-7.33 per cent, 7.58-7.60 per cent and 8.46-8.48 per cent.
The inter-bank call money rate maintained a steady level in an active market. The central bank managed the market to keep it stable by withdrawing lower amounts of cash through auctions of reverse repurchase agreement (repo), treasury bills and Bangladesh Bank (BB) bills and government bonds, fund managers said.
The call rate moved mainly between 6.60 per cent and 10.00 per cent against the previous week's range between 6.50 per cent and 10.00 per cent. In most deals, the rate moved between 6.80 per cent and 7.50 per cent against the previous week's range between 6.60 per cent and 7.50 per cent.
The call rate moved above the bank rate of 5.00 per cent throughout the week that reflected a higher-than-expected pressure on liquidity.
The rate rose to its high at 10.00 per cent coinciding with the previous week's peak. The rate moved above the main trend due to some stray transactions.
The central bank withdrew only Tk 2.44 billion from the market in the week through reverse repo auction at an interest rate of 6.50 per cent per annum against the previous week's about Tk 40.70 billion.
Besides, it drained out Tk 400 million conducting auction of 30-day Bangladesh Bank bills at an annual interest rate of 7.38 per cent.
The central bank also withdrew Tk 2.35 billion against Bangladesh Bank Treasury bonds at interest rates varying between 12.08 per cent and 12.19 per cent per annum.
This influenced the call rate to move above the main trend of the market. The government borrowed Tk 7.00 billion Sunday through auctions of treasury bills. This caused withdrawal of Tk 7.00 billion from the market.
Bidders offered Tk 4.00 billion Tk 2.00 billion and Tk 637 million against 28-day, 91-day and 364-day bills respectively. The central bank accepted all the bids. The ranges of the implicit yields against the accepted bills respectively were 7.32-7.33 per cent, 7.58-7.60 per cent and 8.46-8.48 per cent.