Halister News

(Bloomberg) -- The Reserve Bank of Australia will announce its cash rate target at 2.30pm local time.

• RBA cash rate target est. 1.50%, prev. 1.50%
• NOTE: RBA Expected to Keep Cash Rate Target Unchanged at 1.5%
• AUD/USD may rise unless RBA explains easing bias again; see analysis
• RBA rate seen at 1.50% by end-1Q 2017: survey

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.

• To get this story sent to your inbox real-time, run NI INRATINGS , click on Display & Edit, then Set Alert Delivery

UPGRADES

• Ahmedabad Municipal Corp.
  • Tax-free bonds raised to AA from AA- at Crisil
  • Cites improving financial risk profile, operating efficiency

• D. Navinchandra Exports
  • Long-term bank facilities upgraded to BBB+ from BBB at Crisil
  • Cites efficient working capital management

(Bloomberg) -- While U.S. 10-yr yield closed Monday below 55-DMA support for the first time since Sept. 29, additional support layered just below may limit further declines near term, Bloomberg strategist David Finnerty writes.

• U.S. 10-yr yields currently down 2bps to 2.39% in Asian morning trade after declining 6 bps overnight
  • Additional support is layered between 2.325%-2.376%, an area covering a series of closes between Jan. 5-17
• Further selling of Treasuries may be limited in coming days as investors eye Fed’s Yellen semi-annual testimony Feb. 15 to see if a March rate hike remains on the table despite weak wage data
  • Market currently only pricing in a 24% probability of a March rate hike
  • Federal Reserve Bank of Philadelphia President Patrick Harker and John Williams San Francisco Fed president have both recently said that raising rates in March is a possibility
• NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.

Economic Release Details: {SLMMRVRT Index ECOD} --ARIJIT GHOSH

--SAM NAGARAJAN

--MATTHEW BROCKETT