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BUSINESS STANDARD
Last Updated : Jan 28 2013 | 1:21 AM IST

Sentiment: Bullish

Long gilts jumped up by 60 paise and medium-tenor papers rose by 20 paise following the Union finance minister's statement in the Parliament that interest on small savings need to be revised lower in line with market rates.

Yields moved lower earlier in the day as the RBI deputy governor Rakesh Mohan said there is no specific target for bond yields and that easy money was not a cause for concern.

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Yield on the 8.35 per cent 2022 paper, which is to be auctioned on Thursday, fell by around five basis points. It opened at 7.04 per cent (Rs 113.80), touched a low of 6.98 per cent (Rs 114.45), and was last dealt at 6.986 per cent (Rs 114.38).

Yield on the benchmark 7.40 per cent 2012 paper opened at 6.41 per cent (Rs 106.90), touched a low of 6.38 per cent, and was last dealt at 6.39 per cent (Rs 107.06).

In the corporate bond market, yields came down by around four basis points.

Yield on the PFC 2009 paper spun lower to 6.84 per cent, while the benchmark five-year Hindalco paper was dealt at a yield of 6.4150 per cent.

Call money inched up at 5.40-5.50 per cent as against the previous close of 5.10-5.30 per cent.

Outlook: The gilts market, especially at the long-end, will continue to be buoyant in the run-up to Thursday's auction. Call money will be comfortable.

Forex

Sentiment: Positive

The rupee ended firmer at 48.2550/2600 per dollar in choppy trade.

Dollar supplies matched demand and at the intraday high of 48.2250/2300, the rupee got buying support from state-owned banks.

Outlook: the rupee is expected to trade firm in the 48.20-48.26 per dollar band on the back of healthy greenback inflows.


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First Published: Dec 04 2002 | 12:00 AM IST

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