Call rate rises, fluctuates
Saturday, 16 June 2007
Sarwar Zahan
The inter-bank call money rate rose and fluctuated last week in an active market. The central bank was active to keep the swinging of the rate at a reasonable level, fund managers said
The market felt some pressure on liquidity due to withdrawal of cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank (BB) bills and government.
The call rate moved mainly between 6.60 per cent and 12.50 per cent against the previous week's range between 6.60 per cent and 10.00 per cent. In most deals, the rate moved between 6.80 per cent and 8.00 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, fund managers said.
The rate rose to its high at 12.50 per cent against the previous week's peak at 10.00 per cent.
The central bank withdrew only Tk 21.92 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 2.44 billion.
Besides, the government borrowed Tk 6.50 billion Sunday through auctions of treasury bills.
The central bank also held auctions of T & T treasury bonds to withdraw a total of Tk 991.40 million including Tk 861.40 million against three-year T & T bonds (Mobile) and Tk 110 million against three-year T & T bonds (Digital). The interest rates were 10.5009-11.0507 per cent and 10.2728- 10.4966 per cent per annum respectively.
The dealer banks made deals mainly at rates varying between 6.60 per cent and 8.50 per cent among them in the inter-bank market against the previous week's range between 6.50 per cent and 7.60 per cent.
The government borrowed Tk 6.50 billion Sunday through auctions of treasury bills. This resulted in withdrawal of Tk 6.50 billion from the market in the week.
Bidders offered Tk 3.58 billion and Tk 150 million against the 28-day and 91-day bills respectively.
The central bank accepted all the bids. No bid was offered for 182-day bills.
The ranges of the implicit yields against the accepted bills respectively were 7.32-7.34 per cent and 7.60 per cent.
Besides, Tk 420 million, Tk 1.85 billion and Tk 500 million were devolved to the Bangladesh Bank against 28-day, 91-day and 182-day bills respectively.
The net outflow of cash from the market is expected to increase pressure on liquidity, the fund managers said.
The inter-bank call money rate rose and fluctuated last week in an active market. The central bank was active to keep the swinging of the rate at a reasonable level, fund managers said
The market felt some pressure on liquidity due to withdrawal of cash through auctions of reverse repurchase agreement (repo), treasury bills, Bangladesh Bank (BB) bills and government.
The call rate moved mainly between 6.60 per cent and 12.50 per cent against the previous week's range between 6.60 per cent and 10.00 per cent. In most deals, the rate moved between 6.80 per cent and 8.00 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, fund managers said.
The rate rose to its high at 12.50 per cent against the previous week's peak at 10.00 per cent.
The central bank withdrew only Tk 21.92 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 2.44 billion.
Besides, the government borrowed Tk 6.50 billion Sunday through auctions of treasury bills.
The central bank also held auctions of T & T treasury bonds to withdraw a total of Tk 991.40 million including Tk 861.40 million against three-year T & T bonds (Mobile) and Tk 110 million against three-year T & T bonds (Digital). The interest rates were 10.5009-11.0507 per cent and 10.2728- 10.4966 per cent per annum respectively.
The dealer banks made deals mainly at rates varying between 6.60 per cent and 8.50 per cent among them in the inter-bank market against the previous week's range between 6.50 per cent and 7.60 per cent.
The government borrowed Tk 6.50 billion Sunday through auctions of treasury bills. This resulted in withdrawal of Tk 6.50 billion from the market in the week.
Bidders offered Tk 3.58 billion and Tk 150 million against the 28-day and 91-day bills respectively.
The central bank accepted all the bids. No bid was offered for 182-day bills.
The ranges of the implicit yields against the accepted bills respectively were 7.32-7.34 per cent and 7.60 per cent.
Besides, Tk 420 million, Tk 1.85 billion and Tk 500 million were devolved to the Bangladesh Bank against 28-day, 91-day and 182-day bills respectively.
The net outflow of cash from the market is expected to increase pressure on liquidity, the fund managers said.