Money market update

Money market update

G-sec Market: The 10-year G-sec 6.90% GOI 2019 opened at a yield of 7.07% compared to previous day closing levels of 7.10%. The yields eased tracking RBI announcement of OMP purchases worth Rs6000 crore to be held on 17 September 2009.

The 10-year US Treasury yield hardened from 3.42% to 3.47%. The 3-month Interest Rate Future is trading at a level of 7.99%. The 10-year G-sec 6.90% GOI 2019 is likely to trade in the range of 7.00% - 7.10%. The markets would look forward to cut-offs in T-Bill auctions for further cues.

Money market: The Call Rate and CBLO rate opened at 3.28% and 2.70%. The money market rates are expected to remain soft tracking comfortable liquidity in the system.

Swap Market: The 5Y OIS swap rate traded in the range of 6.57% - 6.62%, compared to previous closing levels of 6.61%. The OIS swap rates are expected to trade range-bound tracking G-sec yields.

Forex Market: The INR opened at Rs48.46 against the USD compared to previous closing level of Rs48.66. Rupee is expected to trade in the range of 48.25 – 48.75.