Re falls, gilt prices up

MARKETS REPORT

Outlook
The rupee is expected to open between 46.34 and 46.40 against the greenback on Friday.

Sentiment: Dull

• The rupee opened at 46.32/34 per dollar and ended lower at 46.37/38. It hit an intraday high of 46.30.
• Premiums on forward dollars inched up. Annualised premiums on six-month and one-year dollars closed at 2.42 per cent and 2.01 per cent respectively.

Money market

Sentiment: Bullish

• Government security prices rose on comments from the finance ministry officials on the monsoon revival.
• Prices of long- and medium-term gilts rose by 25-30 paise.
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, closed at marginally lower at 6.136 per cent, compared with 6.14 per cent on Wednesday.
• Call money rates remained at 4.25-4.30 per cent.
• The corporate bonds market remained volatile, with demand for short-term paper rising.