Sentiment : Cautious
Players tried to align gilt yields to the 7.40 per cent 2012 paper which was auctioned on Saturday.
Primary dealers who bought the paper were looking to sell it.
Long-end papers were well supported what with the twin auction of 15- and 20-year papers in the offing.
Short- and medium-term papers were rangebound.
Foreign banks sold gilts in the morning but state-owned banks and mutual funds gave buying support.
Call rates hovered around the repo floor of 5.75 per cent.
Outlook for Tuesday: Call money is expected to stay comfortable around the repo floor. Liquidity will be comfortable. Long gilts will witness activity.
Forex
Sentiment : Bullish
The rupee pierced the psychological barrier of 48.50 per dollar to end at a seven-month high of 48.4750, compared with Friday's close of 48.50.
Exporter remittances and dollar sales by state-owned banks lifted the local currency to an intra-day high of 48.4675.
With the New York market closed on Monday, cash-based importers stayed away.
Trading in forward dollars was subdued due to which premiums ended flat.
Outlook for Tuesday: The rupee is presaged hovering in the 48.47-48.50 band per dollar. Forward dollar premiums are expected to rule steady.
