G-sec Market: The most actively traded security 6.07% GOI 2014 opened at Rs98.49 implying a yield of 6.43% lower than previous closing levels of 6.43%. The markets would look forward to the rise in prices of Petrol and Diesel on WPI Inflation in the coming weeks.
The impact on inflation is expected to be around 0.50%. The markets would be tracking expectations over Government Borrowing Program in the Union Budget 2009-10. At present, the expectations are that it will rise by around Rs 40,000 crore. The WPI Inflation for week ended 13 June 2009 is going to be released today.
The 10-year 6.05% 2019 (FEB) closed at 6.97%. We expect it to trade in the range of 6.94% - 7.02%. The most actively traded security 6.07% GOI 2014 is likely to trade in the range of 6.40% - 6.50%.
Money Market: The Call rate and CBLO rate opened at 3.25% and 2.75% respectively. The money market rates are expected to trade rangebound tracking comfortable liquidity position.
Swap Market: The 5Y OIS swap rate traded in the range of 6.24% - 6.30%, compared to previous closing levels of 6.31%. The OIS swap rates are expected to trade rangebound tracking the movement in G-sec yields.
Forex Market: The INR opened at Rs47.75 against the USD compared to previous closing level of Rs47.90. Rupee is expected to trade in the range of 47.60 – 48.10.