The Central Bank's Treasuries stock, which represents liquidity domestic asset purchases to off-set dollar sales or reserve appropriations rose to 73.4 billion rupees Thursday from 70.2 billion rupees a day earlier.
Net excess liquidity fell to 16.
7 billion rupees from 19.9 billion rupees. Overnight gilt backed repos were offered around 7.25 percent and un-collateralized call loans were quoted around 8.10/20 percent even before today's auction started, dealers said.
The the auction 7.29 billion rupees were given at weighted average rate of 7.
26 percent, dealers said.
On Wednesday overnight repo rates peaked at 7.65 percent and the weighted average rose to 7.53 percent from 7.38 percent a day earlier, according to central bank data.
Average call rates rose to 8.46 percent from 8.21 percent a day earlier. Call money peaked at 8.55 percent.
The central bank stepped in with a liquidity auction with cash injected at an average 8.
25 percent rate. But dealers expect bid to ease Thursday.