G-sec Market: The benchmark 10-year security 6.05% GOI 2019 opened at Rs97.80 implying a yield of 6.36% slightly lower than previous close of 6.38%.
The yields are expected to be volatile tracking RBI’s announcement of G-sec auction worth Rs 12,000 crore to be held on 14 May 2009.
RBI also lowered the T-Bill auction amount for T-Bill auction to be held on 13 May 2009. The 91 day T-Bill amount has been lowered from 8,000 crore to 5,000 cr. The G-sec yields are likely to trade rangebound between 6.35% – 6.45%.
Money Market: The Call rate and CBLO rate opened at 3.25% and 2.00% respectively. The money market rates are expected to continue to remain soft tracking substantial liquidity in the system.
Swap Market: The 5Y OIS swap rate opened at 5.71% compared to previous closing levels of 5.74%. The OIS swap rates are expected to trade rangebound tracking the movement in G-sec yields.
Forex Market: The INR opened at Rs 49.05 against the USD compared to previous closing level of Rs 49.26. Rupee is expected to trade in the range of 48.85 – 49.50.