Markets Report

 Sentiment: Bullish

 

 

Yields on gilts edged up from lifetime lows after RBI said that it will conduct an OMO tomorrow to suck out excess liquidity.

The benchmark 7.27 per cent 10-year gilt inched up to close at 5.0522 per cent.

The RBI is seeking to suck out Rs 11,000 crore by selling the 5.48 percent 2009 bond for up to Rs 5,000 crore and the 6.17 percent 2023 bond for up to Rs 6,000 crore.

The RBI received and accepted 40 bids aggregating Rs 27,160 crore at the one-day repo.

 Forex market

 Market Sentiment: Bullish

 

 

The rupee ended at a new three-year high of 45.26/27 per dollar against its previous 45.39/41.

The six-month annualised forward closed at 0.32 per cent as against 0.15 per cent.

 Outlook

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 The rupee is seen trading in the 45.20-45.27 band to a dollar.