10-Year Gilt At New Low

The benchmark 10-year gilt finished at a new lifetime closing yield of 6.01 per cent.

The five-year Hindalco paper was dealt four basis points lower to finish at a new lifetime closing low of 6.12 per cent.

Long and medium tenor gilts rose by 30 paise.

Call finished unchanged at the previous day's level of 5.50-5.60 per cent.

Sentiment: Bullish

Outlook: Driven by easy liquidity, the 10-year gilt is likely to breach the 6 per cent yield level. Gilts prices will be up, while corporate yields may edge lower by around five basis points. Call money will rule easy.

Forex

 

Sentiment: Bullish

The rupee closed a tad weak at 47.9850/9900 amid dollar buying by state-run banks.

Exporter supplies at intraday low level propped the rupee to 47.96/97.

Outlook: The rupee is expected to hover in the 47.97-48.03 band to a dollar. Supplies will be limited as New York and other major forex markets were closed today.