Money Markets

Liquidity to be tight with outflows yet to return to the system

Liquidity continues to be tight with government spending and advance tax outflows yet to come back into the banking system, and muted foreign exchange inflows.

Coupon flows have been equally negligible over the past weeks, marked by negative net outflows.

Nevertheless, the tautness should ease this week with the funds expected to flow back.

Angst over the Gulf War have now ebbed and there