Sentiment : Cautious
Players tried to align gilt yields to the 7.40 per cent 2012 paper which was auctioned on Saturday.
Primary dealers who bought the paper were looking to sell it.
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Long-end papers were well supported what with the twin auction of 15- and 20-year papers in the offing.
Short- and medium-term papers were rangebound.
Foreign banks sold gilts in the morning but state-owned banks and mutual funds gave buying support.
Call rates hovered around the repo floor of 5.75 per cent.
Outlook for Tuesday: Call money is expected to stay comfortable around the repo floor. Liquidity will be comfortable. Long gilts will witness activity.
Forex
Sentiment : Bullish
The rupee pierced the psychological barrier of 48.50 per dollar to end at a seven-month high of 48.4750, compared with Friday's close of 48.50.
Exporter remittances and dollar sales by state-owned banks lifted the local currency to an intra-day high of 48.4675.
With the New York market closed on Monday, cash-based importers stayed away.
Trading in forward dollars was subdued due to which premiums ended flat.
Outlook for Tuesday: The rupee is presaged hovering in the 48.47-48.50 band per dollar. Forward dollar premiums are expected to rule steady.