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MARKET EYE-Indian OIS rates at 1-1/2 month peaks; CPI stays high
August 21, 2012 / 9:23 AM / 5 years ago

MARKET EYE-Indian OIS rates at 1-1/2 month peaks; CPI stays high

* India's benchmark five-year OIS rate rises 4
basis points to 7.18 percent, its highest in over a month and
half, while the one-year rate also gains 4 bps to
7.83 percent, its highest since July 4.
* Dealers see increased paying in OIS rates after July CPI data
stayed at nearly 10 percent, exacerbating worries that
inflationary pressures would keep RBI from cutting interest
rates.
* India's annual consumer price inflation slowed
slightly in July to 9.86 percent, but food prices rose on the
back of a drought in parts of the country. 
* Increase in risk appetite also help push OIS rates higher:
European shares gain while the euro  rises to a
near-two week high on renewed talk the ECB could take strong
action to ease Spanish and Italian borrowing costs. 

 (swati.bhat@thomsonreuters.com/;
swati.bhat.thomsonreuters.com@reuters.net)

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