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MARKET EYE-India 1-yr OIS rate eases; paying bias seen in longer-end
January 29, 2013 / 9:03 AM / in 5 years

MARKET EYE-India 1-yr OIS rate eases; paying bias seen in longer-end

* India's 1-year OIS swap rate falls 3 basis
points (bps) to 7.53 percent after the Reserve Bank of India
cuts the cash reserve ratio (CRR) by 25 bps, which would inject
180 billion rupees into the banking system.
* The benchmark 5-year OIS rate is unchanged at
7.14 percent.
* Moses Harding, head of asset liability management at IndusInd
Bank, says the tone will be likely neutral in the shorter-end
with paying bias in the longer-end as pressure on bond yields to
remain.
* Bond yields are not expected to fall significantly in the
medium/longer-end now that rate cut is out of the way and CRR
cut is diluting OMO expectations, he adds.

 (subhadip.sircar@thomsonreuters.com/;
subhadip.sircar.thomsonreuters.com@reuters.net)

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