Sentiment: Neutral
Prices of gilts moved in a narrow 10-paise band. The benchmark 10-year paper opened at a yield of 6.41 per cent (Rs 106.87) and was last dealt at 6.40 per cent (Rs 106.95).
Cut-offs at the auction of the 364-day bill (yield: 5.52 per cent) and the 91-day bill (yield: 5.44 per cent) were in line with expectations.
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The benchmark five-year corporate bond was dealt at an yield of 6.40/41 per cent.
The 7.95 per cent 2007 IRFC paper was dealt at a lower yield of 6.5350 per cent as against the previous day's dealt levels of 6.55 per cent.
Call money was dealt in the 5.40-5.50 per cent band, the same as on Tuesday.
Outlook: With the 91-day bill sailing through, gilts will see rangebound trading coupled with some cautious buying. Call money could turn firm as this is the concluding week of the reporting fortnight.
Forex
Sentiment: bullish
The rupee ended at a 1-year high of 48.1450/1525 per dollar owing to good exporter inflows, dollar shorting by banks and a disinterested RBI.
Outlook: The rupee is expected to trade around 48.12-48.16 to a dollar. Forwards should hold on to current levels.