HALISTER1: INSIDE INDIA: INR Drops; StanChart Recommends Buying 7-Yr Bonds

INSIDE INDIA: INR Drops; StanChart Recommends Buying 7-Yr Bonds

(Bloomberg) -- Rupee falls 0.1%, bonds rise; RBI Governor Patel downplayed inflation risk at recent meeting, Economic Times reports.
  • Decline in CPI means expectations for 25-bp repo rate cut in Oct. remain strong, likely supporting rates market near term, Standard Chartered says in note; recommends buying 7- yr bonds with 6.60% target; currently at 6.90%
    • Naming of monetary policy panel members has limited impact on USD/INR; rupee remains the only short-term overweight recommendation in Asia
    • Expects USD/INR to edge down to 66.25 by end-2016 on improved risk backdrop after Fed and BOJ
  • Moody’s says India’s high debt-GDP ratio is constraining rating
  • Rupee at 66.7188 per dollar
  • India’s monetary policy panel more hawkish than expected, Nomura says
  • BSE to auction 46.15b rupees of debt quota for foreigners today
  • Yield on 7.59% 2026 bond down 3 bps to 6.93%; yield on 6.97% 2026 note down 2 bps at 6.78%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
STAN LN (Standard Chartered PLC)

To de-activate this alert, click here

UUID: 7947283