Sentiment: cautious
Gilt yields edged up as the cut-off at the OMO auction of the 10.95 per cent 2011 paper was below market expectations -- at Rs 128.50 against the expected Rs 129.10.
The benchmark 7.40 per cent 2012 paper opened at a yield of 6.384 per cent (Rs 107.10), touched a low of 6.370 per cent (107.20) and edged up to be last dealt at 6.405 per cent (Rs 106.95).
More From This Section
Among corporate bonds, the yield of the PFC 2009 paper rose five basis points to 6.83 per cent.
The benchmark five-year corporate paper was dealt at a yield of 6.40/6.45 per cent.
Call money rates ruled easy and closed at 5.10-5.30 per cent as against the previous close of 5.10-5.35 per cent.
Outlook: The gilts market will be rangebound ahead of the auction on Thursday. There could be intermittent profit booking. Easy liquidity will see call rates rule easy.
Forex
Sentiment: positive
The rupee closed a tad firm at 48.2750/2800 to a dollar against its previous 48.2850/2950.
Opening at 48.2750/2850, the rupee sank to an intra-day low of 48.34/35 following dollar purchases by state-run banks coupled with squaring up of short positions.
Importers, who hitherto left their dollar exposures unhedged owing to the strong rupee, were seen covering positions.
Forwards edged lower on the back of liquidity in the call market.
Outlook: The rupee is seen hovering in the 48.25-48.30 band to a dollar with a slightly firm bias.