Intraday Mkts View

Call :

This is the start of new reporting fortnight. Liquidity would remain comfortable. Banks parked Rs 275.45 Bn to RBI under reverse repo window.

1Yr Ois:

Indian one-year overnight indexed swaps eased to a fresh five-month low on Friday, tracking a fall in government bond yields and on expectations of steady policy rates in the coming weeks.

The one-year interest rate swap traded at 4.77/80 percent, off an intraday trough of 4.71 percent, its lowest since Dec. 1.

10 Yr INR G Sec Bond :

Indian federal bond yields fell on Friday, tracking global cues as fears that Greece's debt problems could develop into a wider sovereign credit crisis led to a rally in U.S. Treasuries.


10 Yr USD Bond :


U.S. Treasuries ended lower on Friday in volatile trading, as safe-haven demand cooled despite continuing fears over the sovereign debt crisis in Europe. Bond prices fell, ignoring a fresh sell-off in U.S. stocks that left the major indexes down as much as 2.0 percent for the day, after the U.S. Labor Dept reported larger-than-expected employment gains in April, suggesting the economic recovery was well underway.


Spot :

Spot will open weaker tracking the stock market and dollor index. Spot should be range between 45.00 - 45.40

Forwards 1Yr:

1 Yr Annualized Premia was closed at 2.50% on friday. These are very attractive lvls to pay as the daily carry is positive.