January 22, 2013 / 10:09 AM / 5 years ago

MARKET EYE-Indian OIS rates lower as FM comments aid

* India's benchmark 5-year swap rate down 1 basis
point (bp) at 7.12 percent while the 1-year rate 
down 2 bps at 7.52 percent.
* Receivings in swaps come after finance minister P.Chidambaram
reiterated his commitment towards meeting the fiscal deficit
target and improving the investment climate during a visit to
Hong Kong to meet foreign investors.  
* The market is largely at a standstill ahead of policy review
with no major cues scheduled in between, traders said.
* In the Jan. 29 policy review, 30 out of 40 economists expect a
25 bps reduction in the repo rate on the back of slowing
inflation and weak economic activity, a Reuters poll showed.
 
* With 25 bps expected repo cut almost priced in, the
participants would look for either a higher rate cut or the tone
of the policy to take position, says Shakti Satapathy, a fixed
income analyst with AK Capital.

 (archana.narayanan@thomsonreuters.com; +91-22-61807244; Reuters
Messaging: archana.narayanan.thomsonreuters.com@reuters.net)

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