May 30, 2012 / 7:02 AM / 5 years ago

MARKET EYE-India OIS rates crawl higher as OMO hopes dwindle

*India OIS rates marginally higher, with the 1-year
 rate 1 basis point up at 7.94 pct, and 5-year
 swap rate also 1 bp higher at 7.45 pct.	
*Diminishing hopes of open market operations this week, amid
easing liquidity conditions, has led to some paying in swaps,
traders said.	
*Forex dealers have not cited any recent central bank
intervention after the rupee recovered from its life low hit on
Thursday and repo borrowings has been under 1 trillion rupees
for the third straight session, reflecting improved liquidity.	
* "With improved liquidity on the back of anticipated government
spending, the chances of OMO for this week looks unlikely thus
leading to payings in OIS," said Shakti Satapathy, a fixed
income analyst with AK Capital Services.    	
	
 (archana.narayanan@thomsonreuters.com)

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