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MARKET EYE-India OIS rates flat; receive on upticks - Nomura
November 8, 2012 / 9:52 AM / 5 years ago

MARKET EYE-India OIS rates flat; receive on upticks - Nomura

* India's 1-year OIS remain flat at 7.77 percent,
while the longer 5-year OIS rate is also
unchanged at 7.14 percent.
* Nomura says markets are pricing in about 35 bps cut within
three months and 100 bps cuts within one year assuming overnight
fixings track the repo rate in April.
* The investment bank advises investors to receive swaps on
upticks and pay front-end tactically to earn carry.
* Cash in the system continues to tighten with repo bids rising
to 796.20 billion rupees, the highest in six sessions.
* The rise of currency in circulation is expected to be a drag
on the system in the fiscal second half as well as from the
potential maturing of RBI's FX forward contracts.


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