Inflation worries weigh on bond markets

MARKETS REPORT

Forex market

Outlook: The spot rupee is expected to open in the range of 46.46/50 to a dollar on Friday.

Sentiment: Bearish

• Tracking the rise in the dollar overseas, the spot dollar lost around 10-12 paise to close at 46.4750/4850 after opening at 46.35/38 and reaching an intra-day low of 46.50.
• Forward premiums inched up following the spot rupee with the six-month and one-year premiums closing at 2.82 per cent and 2.15 per cent, respectively.

Money market

Sentiment: Bearish

• The market came down heavily due to bearish sentiment owing to expectation of inflation touching 6.50-7 per cent on Friday.
• Gilt prices crashed by Rs 1.50-70 paise in the longer end of the maturity, while the medium tenure witnessed a fall of Rs 1.10 on fears of higher inflation figure.
• The 10-year benchmark closed at a high of 6.28 per cent.
• Call rates hovered around 4.20-30 per cent.