India's 1-year swap rates up on cash squeeze, profit-taking in bonds
India's one-year overnight interest swap (OIS) heading for a sixth week of fall, but up 1 basis point (bp) at 7.23 per cent from its previous close.
The five-year swap rate on path for its fifth weekly fall. It is 2 bps lower at 6.95 per cent. Paying in the near-end tailing the cash squeeze in the banking system which jumped above Rs 1 trillion on Friday.
Profit-taking after the recent rally in bonds and the rebound in global commodity prices also weighing on 1-year swaps.
Receivings in five-year swaps follow expectations the Reserve Bank of India will cut interest rates next week for a third time this year, drawing comfort from a fall in inflation, a Reuters poll showed.
The five-year swap rate on path for its fifth weekly fall. It is 2 bps lower at 6.95 per cent. Paying in the near-end tailing the cash squeeze in the banking system which jumped above Rs 1 trillion on Friday.
Profit-taking after the recent rally in bonds and the rebound in global commodity prices also weighing on 1-year swaps.
Receivings in five-year swaps follow expectations the Reserve Bank of India will cut interest rates next week for a third time this year, drawing comfort from a fall in inflation, a Reuters poll showed.
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