G-sec Market: The benchmark 10-year security 6.05% GOI 2019 opened at Rs93.50 implying a yield of 6.89% lower than previous close of 7.01%. The markets opened on a positive note, tracking announcement of lower De-sequestering of MSS balance.
RBI announced that out of the announced Rs45,000 crore, only Rs12,000 crore have been transferred from MSS cash account to Normal cash account in FY 2008-09. The rest of the amount would be transferred in FY 2009-10.
The market is expected to trade rangebound, awaiting results of G-Sec and T-Bill auctions slated to be held today.
The markets will also be looking forward to WPI inflation data for the week ended 21 March 2009. The G-sec yields are likely to be rangebound between 6.80% - 7%.
Money market: The Call rate and CBLO rate opened at 4.90% and 3.85% respectively. The money market rates are likely to soften tracking adequate liquidity in the system.
Swap Market: The 5Y OIS swap rate opened at 5.50% lower than previous close of 5.62%. The OIS swap rates are expected to trade rangebound tracking the movement in G-sec yields.
Forex Market: The INR opened at Rs50.32 against the USD compared to previous closing level of Rs50.74. Rupee is expected to trade in the range of 50.10 - 50.50.