Sentiment: Positive
Abundant liquidity coupled with players taking fresh positions for the new quarter resulted in medium-tenor gilts winding up 15 paise higher.
Yield on the benchmark 7.40 per cent 2012 paper fell by two basis points to 7.14 per cent (price: Rs 101.75).
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Call money closed lower at 5.55-5.65 per cent as against Friday's 5.60-5.70 percent.
At the 2-day repo auction, there were 21 bids for Rs 17,265 crore, all of which were fully accepted at 5.75 per cent.
Outlook: Prices of gilts are expected to go up by 5-10 paise. Call money will rule easy around the repo rate owing to the surfeit of cash in the banking system.
Forex
Sentiment: Bullish
The rupee closed at a fresh eight-month high of 48.3550/3600 per dollar as exporters sold heavily on expectations of the rupee rising further.
Demand for the greenback was thin, but dollar buying by state-owned banks at 48.3550 levels prevented the rupee from gaining further ground.
Premiums on the forward dollar came off by two to three basis points.
Outlook: The rupee is expected to test sub-48.35 levels per dollar on Thursday, and could hover in the 48.34-48.37 band. Forward premiums will swing around the psychological level of four per cent.