Intra day view - 14th May

Call :



Liquidity would remain comfortable. Banks parked Rs 153.20 Bn to RBI under reverse repo window.



1Yr Ois:



The one-year swap rate ended at 4.82 percent from Wednesday's close of 4.86 percent.



10 Yr INR G Sec Bond :



Indian federal bond yields should ease early on Friday in line with a drop in U.S. yields, but the focus will be on April inflation data at around noon (0630 GMT) and a $2.7 billion auction during the day.



10 Yr USD Bond :



U.S. Treasuries rose on Thursday, sending long bonds up a point in price as losses in the euro and struggling stocks enhanced the allure of safe-haven government bonds.



Spot :



The Indian rupee should open week tracking share markets and currencies. Spot would be range between 45.00-45.40



Forwards 1Yr:



1 Yr Annualized Premia was closed at 2.61% on Thursday. In past few weeks forwards tracking spot very closely and any uptick in spot results in forwards receiving. Interbank is paying forwards on dips to give some support despite receiving from some corporate. Forwards would remain in the range of 2.50-2.75%.


Regards,
Mukul Mehta