G-sec Market: The benchmark 10-year security 6.05% GOI 2019 opened at Rs98.60 implying a yield of 6.20% lower than previous close of 6.30%. The yields are expected to ease tracking RBI announcement that there will be no Second LAF auction from May 6 2009.
The Second LAF auction would only be conducted on reporting Friday. RBI also announced purchases under OMO worth Rs6,000 crore to be held on 7 May, 2009.
RBI would be purchasing 5 securities using Uniform Price Method. The G-sec yields are likely to trade rangebound between 6.10% – 6.30%.
Money Market: The Call rate and CBLO rate opened at 3.25% and 1.00% respectively. The money market rates are expected to remain soft tracking adequate liquidity in the system.
Swap Market: The 5Y OIS swap rate opened at 5.40% compared to previous closing levels of 5.47%. The OIS swap rates are expected to ease tracking the movement in G-sec yields.
Forex Market: The INR opened at Rs49.55 against the USD compared to previous closing level of Rs49.29. Rupee is expected to trade in the range of 49.30 – 49.80.