Spot Re zooms, gilts bounce back

Money market

Sentiment: Bullish

• Government securities prices dived during the early part of the trading session. They, however, bounced back towards the end of the day.
• Prices of long-term papers ended up by 10 paise and those of medium-term securities closed up by 5 paise.
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, closed at around 5.18 per cent.
• Call money rates remained at 4.40-50 per cent.
• Subscriptions at the repo window stood at Rs 53,000 crore.

Forex market

Sentiment: Bullish

• The rupee gained around 13 paise and ended at 45.7450/7550 per dollar.
• Premiums on forward dollars firmed up. Annualised premiums on six-month and one-year dollars closed at 0.65 per cent and 0.63 per cent respectively.

Outlook

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The rupee is expected to open between 44.74 and 44.78 against the greenback.