Gilts plunge on robust US consumer confidence data

MARKETS REPORT

Outlook
The rupee is expected to open between 46.29 and 46.33 against the greenback on Thursday.

Sentiment: Bearish

• The rupee opened at 46.27/28 per dollar and closed lower at 46.30/31.
• Premiums on forward dollars inched up marginally. Annualised premiums on six-month and one-year dollars closed at 2.54 per cent and 1.95 per cent respectively.

Money market

Sentiment: Bearish

• Government security prices slid on robust US consumer confidence data released on Tuesday.
• Prices of long- and medium-term gilts fell by Re 1.
• The yield on the ten-year benchmark paper, 7.37 per cent 2104, closed at 6.13, compared with 5.92 on Tuesday.
• Call money rates ended at 4.20-30 per cent.
• The cutt-off rate on the 91-day treasury bill was set at 4.50 per cent, same as last week's, but subcriptions were high.
• The on-tap sale of state government loans drew subscriptions for six states out of a total of 19.