Gilts zoom, rupee steady

Money market

Sentiment: Bullish

• Government security prices shot up on the RBI governor's statements on inflation and Centre's borrowing programme.
• Prices of long-term securities went up by 20-25 paise and those of medium- and short-term papers rose by 10 paise.
• The yield on the ten-year benchmark, 7.37 per cent 2014, closed at around 5.17 per cent.
• Call money rates softened at 4.3-4.5 per cent.
• Repo subscriptions stood at Rs 50,000 cr.

Forex market

Sentiment: Bullish

• The rupee ended flat 44.73/74 per dollar. It touched an intraday low of 44.7850 due to greenback demand from oil companies.
• Premiums on forward dollars remained rangebound. Annualised premiums on six-month and one-year dollar closed at 0.71 per cent and 0.63 per cent respectively.

Outlook

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The rupee is expected to open between 44.72 to 44.76 against the greenback.