INSUBCONTINENT EXCLUSIVE:
expectations of lower inflation while the local monetary unit plunged to unprecedented lows and drove down equities.
The benchmark bond
yields dipped 13 basis points to close at 8.03 per cent pushing prices up
for the first time to touch another record low at 74.22 per dollar
The local unit ended 0.26 per cent down at 73.77.
The arbitrage opportunity between offshore and onshore markets partly contributed to the
Some overseas funds, which were betting on interest rate rise, sold off in the derivatives market.
The gap between onshore one-month
forwards and the offshore similar maturity forwards widened to 22 paisa compared with about 10-12 paisa earlier in the week, dealers pointed
head of treasury and global markets at Bank of Baroda
points lower in the market, while bonds with less than five-year maturities were sold at rates 10-15 basis points less than the levels
Global Investments.
Short to medium terms rates have fallen significantly
While money market rates (commercial papers) have dipped 30-40 basis points Friday, bond rates have also decreased 10-15 basis points,
