Money Market update

Money Market update

G-sec Market: The 10-year G-sec 6.90% GOI 2019 opened at a yield of 6.96% and was then trading around 7.07% levels. The 10-year G-sec 6.90% GOI 2019 closed at 7.09% yesterday. The 10-year US Treasury yield eased from 3.46% to 3.44%. The 3-month Interest Rate Future is trading at a level of 7.93%.

The 10-year G-sec 6.90% GOI 2019 is likely to trade in the range of 7.05% - 7.12%. The markets would look forward to cut-offs in OMO auctions, underwriting commissions and reading on WPI inflation.

Money market: The Call Rate and CBLO rate opened at 3.30% and 2.91%. 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 6.55% - 6.60%, 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 Rs48.14 against the USD compared to previous closing level of Rs48.01. Rupee is expected to trade in the range of 47.90 – 48.40.