Money Market update

Money Market update

G-sec Market: The 10-year G-sec 6.90% GOI 2019 opened at a yield of 7.11% compared to previous day closing levels of 7.14%. RBI issued a draft paper on allowing corporate bonds for Repo transactions.

The markets would look forward to cut-offs in G-sec auctions. The 10-year US Treasury yield eased from 3.48% to 3.42%. 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 7.03% - 7.15%.

Money market: The Call Rate and CBLO rate opened at 3.30% and 2.85%. 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 6.59% - 6.64%, compared to previous closing levels of 6.65%. The OIS swap rates are expected to trade range-bound tracking G-sec yields.

Forex Market: The INR opened at Rs48.26 against the USD compared to previous closing level of Rs48.16. Rupee is expected to trade in the range of 48.00 – 48.50.