Informist, Monday, Sep 12, 2022
By Shubham Rana
NEW DELHI – Overnight indexed swap rates rose today as traders paid higher fixed rates noting a rise in crude oil prices and US Treasury yields, dealers said. Trade volumes were muted on caution ahead of the release of India CPI data, due after after market hours today, and US CPI data on Tuesday.
The one-year overnight indexed swap rate settled at 6.29% as against 6.26% on Friday. The five-year swap rate closed at 6.34% as against 6.30% the previous day.
US Treasury yields ended higher on Friday as Federal Reserve Governor Christopher Waller said he supported another sharp rate hike in the September policy meeting.
The yield on the 10-year benchmark US Treasury note ended at 3.33% on Friday as against 3.29% on Thursday. The yield stayed close to 3.30% today.
According to CME FEDWatch tool, Fed funds futures traders are pricing in a 90% chance of the Fed hiking interest rates by 75 basis points at its next rate-setting meeting.
Crude oil prices rose today in volatile trade due to weakness in the dollar. However, concerns over sharp interest rate hikes in the US and Europe, and a weak demand outlook in the face of China's COVID-19 restrictions limited the gains.
The Brent crude contract for November delivery rose to nearly $94 per barrel today from $92.84 per bbl at close on Friday.
"Traders took positions before the CPI data today," a dealer at a private bank said. "The CPI print today is seen higher than in July, so some traders paid higher fixed rates today."
India's CPI inflation likely rose to 6.9% in August from a five-month low of 6.71% in the previous month, mainly on account of a sequential rise in food prices, according to an Informist poll of 22 economists.
Other than the domestic inflation print, traders also await the release of the US inflation print for August, due after market hours on Tuesday, dealers said.
OUTLOOK
On Tuesday, swap rates are seen taking cues from the release of retail inflation data for August, due after market hours today.
India's CPI inflation likely rose to 6.9% in August from a five-month low of 6.71% in the previous month, mainly on account of a sequential rise in food prices, according to an Informist poll of 22 economists.
Any movement in US Treasury yields and crude oil prices may lend cues at open.
The swap rate in the one-year segment is seen at 6.20-6.45%, and in the five-year segment at 6.30-6.55%.
| At 1530 IST | Friday |
1-year OIS | 6.29% | 6.26% |
2-year OIS | 6.30% | 6.27% |
5-year OIS | 6.34% | 6.30% |
2-year MIFOR | 6.36-6.48% | 6.31-6.43% |
5-year MIFOR | 6.64-6.76% | 6.59-6.71% |
End
US$1 = 79.52 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Namrata Rao
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2022. All rights reserved.
Informist, Monday, Sep 12, 2022
By Shubham Rana
NEW DELHI – Overnight indexed swap rates rose today as traders paid higher fixed rates noting a rise in crude oil prices and US Treasury yields, dealers said. Trade volumes were muted on caution ahead of the release of India CPI data, due after after market hours today, and US CPI data on Tuesday.
The one-year overnight indexed swap rate settled at 6.29% as against 6.26% on Friday. The five-year swap rate closed at 6.34% as against 6.30% the previous day.
US Treasury yields ended higher on Friday as Federal Reserve Governor Christopher Waller said he supported another sharp rate hike in the September policy meeting.
The yield on the 10-year benchmark US Treasury note ended at 3.33% on Friday as against 3.29% on Thursday. The yield stayed close to 3.30% today.
According to CME FEDWatch tool, Fed funds futures traders are pricing in a 90% chance of the Fed hiking interest rates by 75 basis points at its next rate-setting meeting.
Crude oil prices rose today in volatile trade due to weakness in the dollar. However, concerns over sharp interest rate hikes in the US and Europe, and a weak demand outlook in the face of China's COVID-19 restrictions limited the gains.
The Brent crude contract for November delivery rose to nearly $94 per barrel today from $92.84 per bbl at close on Friday.
"Traders took positions before the CPI data today," a dealer at a private bank said. "The CPI print today is seen higher than in July, so some traders paid higher fixed rates today."
India's CPI inflation likely rose to 6.9% in August from a five-month low of 6.71% in the previous month, mainly on account of a sequential rise in food prices, according to an Informist poll of 22 economists.
Other than the domestic inflation print, traders also await the release of the US inflation print for August, due after market hours on Tuesday, dealers said.
OUTLOOK
On Tuesday, swap rates are seen taking cues from the release of retail inflation data for August, due after market hours today.
India's CPI inflation likely rose to 6.9% in August from a five-month low of 6.71% in the previous month, mainly on account of a sequential rise in food prices, according to an Informist poll of 22 economists.
Any movement in US Treasury yields and crude oil prices may lend cues at open.
The swap rate in the one-year segment is seen at 6.20-6.45%, and in the five-year segment at 6.30-6.55%.
| At 1530 IST | Friday |
1-year OIS | 6.29% | 6.26% |
2-year OIS | 6.30% | 6.27% |
5-year OIS | 6.34% | 6.30% |
2-year MIFOR | 6.36-6.48% | 6.31-6.43% |
5-year MIFOR | 6.64-6.76% | 6.59-6.71% |
End
US$1 = 79.52 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Namrata Rao
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2022. All rights reserved.
