{"id":95998,"date":"2018-10-23T22:00:48","date_gmt":"2018-10-23T22:00:48","guid":{"rendered":"http:\/\/www.bnreport.com\/what-derivative-market-hints-for-future-rates\/"},"modified":"2018-10-23T22:00:48","modified_gmt":"2018-10-23T22:00:48","slug":"what-derivative-market-hints-for-future-rates","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/what-derivative-market-hints-for-future-rates\/","title":{"rendered":"What derivative market hints for future rates?"},"content":{"rendered":"

MUMBAI: Rest of the world may be on a tightening monetary policy<\/a> bias, but not the Reserve Bank of India<\/a>, if one goes by what bond traders are indicating. <\/p>\n

The Overnight Indexed Swaps<\/a> (OIS) with one-year maturity, where a trader exchanges fixed rate payment for floating rates, has come off 40 basis points to 7.15% in the past few days signalling an RBI pause for the rest of the year and the first quarter of next. A basis point is 0.01 percentage point. <\/p>\n

\u201cAfter the MPC's surprise decision to leave rates unchanged in the October meeting, the market has toned down rate hike expectations,\u201d said Ananth Narayan, associate professor (finance) at SP Jain Institute of Management and Research<\/a>. \u201cContinued soft food inflation and CPI prints, alongside lower crude oil prices have also helped in this adjustment down in swap prices.\u201d <\/p>\n

The Reserve Bank of India surprised the market by not raising the policy earlier this month belying majority market expectations. Before the RBI policy<\/a>, the OIS metric factored in two consecutive rate increases of 50 basis points. <\/p>\n

\u201cSoftening of one-year OIS curve as opposed to CP curve is a sign of easing pressure on non-credit premium components,\u201d said Soumyajit Niyogi, Associate Director, India Ratings and Research. \u201cThe sharp drop is mostly due to RBI's signalling effect \u2013 first ensured liquidity management through one month OMO calendar, secondly alleviating fear of using policy rate as a tool against weak currency and subsequently giving signal of higher tolerance for currency as an adjusting factor.\u201d <\/p>\n

The yield on benchmark government bonds has fallen more than 30 basis points over a month amid rising trade volumes. The gauge ended at 7.89 per cent Tuesday, down from September peak of 8.23 percent. Bond yields and prices move in opposite directions. <\/p>\n

\u201cGiven the worries around corporate and NBFI debt rollovers, the expectations are that RBI will continue to provide money market liquidity through repos, OMOs and regulatory forbearance,\u201d said Narayan. <\/p>\n

The central bank declared it would buy Rs 36,000 crore in aggregate in October. The Reserve Bank of India has kept the market well-oiled with July-October bond purchases at Rs 76,000 crore in total. <\/p>\n

<\/a><\/strong> <\/a><\/p>\n

Original Article<\/a><\/p>\n

[contf]
\n[contfnew]
\n <\/p>\n

ET Markets<\/a><\/h5>\n

[contfnewc]
\n[contfnewc]<\/p>\n","protected":false},"excerpt":{"rendered":"

MUMBAI: Rest of the world may be on a tightening monetary po..<\/p>\n","protected":false},"author":1,"featured_media":95999,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[],"class_list":["post-95998","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"\nWhat derivative market hints for future rates? - Business News Report<\/title>\n<meta name=\"description\" content=\"MUMBAI: Rest of the world may be on a tightening monetary po..\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bnreport.com\/en\/what-derivative-market-hints-for-future-rates\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What derivative market hints for future rates? - Business News Report\" \/>\n<meta property=\"og:description\" content=\"MUMBAI: Rest of the world may be on a tightening monetary po..\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.bnreport.com\/en\/what-derivative-market-hints-for-future-rates\/\" \/>\n<meta property=\"og:site_name\" content=\"Business News Report\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Business-NewsReport-328225811095934\/\" \/>\n<meta property=\"article:published_time\" content=\"2018-10-23T22:00:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/10\/photo-18-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1070\" \/>\n\t<meta property=\"og:image:height\" content=\"580\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"infopal11\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@BNReport\" \/>\n<meta name=\"twitter:site\" content=\"@BNReport\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"infopal11\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/what-derivative-market-hints-for-future-rates\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/what-derivative-market-hints-for-future-rates\\\/\"},\"author\":{\"name\":\"infopal11\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#\\\/schema\\\/person\\\/19d1c5a2dd7f60584a09de4a7805d68f\"},\"headline\":\"What derivative market hints for future rates?\",\"datePublished\":\"2018-10-23T22:00:48+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/what-derivative-market-hints-for-future-rates\\\/\"},\"wordCount\":365,\"publisher\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/what-derivative-market-hints-for-future-rates\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2018\\\/10\\\/photo-18-1.jpg\",\"articleSection\":[\"Finance\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/what-derivative-market-hints-for-future-rates\\\/\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/what-derivative-market-hints-for-future-rates\\\/\",\"name\":\"What derivative market hints for future rates? - Business News Report\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/what-derivative-market-hints-for-future-rates\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/what-derivative-market-hints-for-future-rates\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2018\\\/10\\\/photo-18-1.jpg\",\"datePublished\":\"2018-10-23T22:00:48+00:00\",\"description\":\"MUMBAI: Rest of the world may be on a tightening monetary po..\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/what-derivative-market-hints-for-future-rates\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.bnreport.com\\\/en\\\/what-derivative-market-hints-for-future-rates\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/what-derivative-market-hints-for-future-rates\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2018\\\/10\\\/photo-18-1.jpg\",\"contentUrl\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2018\\\/10\\\/photo-18-1.jpg\",\"width\":1070,\"height\":580},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/what-derivative-market-hints-for-future-rates\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"\u0627\u0644\u0631\u0626\u064a\u0633\u064a\u0629\",\"item\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What derivative market hints for future rates?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/\",\"name\":\"Business News Report\",\"description\":\"Latest News on the World of Politics & Business\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#organization\",\"name\":\"\u0628\u0632\u0646\u0633 \u0631\u064a\u0628\u0648\u0631\u062a \u0627\u0644\u0627\u062e\u0628\u0627\u0631\u064a\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2020\\\/12\\\/LOGO2.png\",\"contentUrl\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2020\\\/12\\\/LOGO2.png\",\"width\":200,\"height\":50,\"caption\":\"\u0628\u0632\u0646\u0633 \u0631\u064a\u0628\u0648\u0631\u062a \u0627\u0644\u0627\u062e\u0628\u0627\u0631\u064a\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/Business-NewsReport-328225811095934\\\/\",\"https:\\\/\\\/x.com\\\/BNReport\",\"https:\\\/\\\/www.instagram.com\\\/business.newsreport\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#\\\/schema\\\/person\\\/19d1c5a2dd7f60584a09de4a7805d68f\",\"name\":\"infopal11\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/author\\\/infopal11\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What derivative market hints for future rates? - Business News Report","description":"MUMBAI: Rest of the world may be on a tightening monetary po..","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.bnreport.com\/en\/what-derivative-market-hints-for-future-rates\/","og_locale":"en_US","og_type":"article","og_title":"What derivative market hints for future rates? - Business News Report","og_description":"MUMBAI: Rest of the world may be on a tightening monetary po..","og_url":"https:\/\/www.bnreport.com\/en\/what-derivative-market-hints-for-future-rates\/","og_site_name":"Business News Report","article_publisher":"https:\/\/www.facebook.com\/Business-NewsReport-328225811095934\/","article_published_time":"2018-10-23T22:00:48+00:00","og_image":[{"width":1070,"height":580,"url":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/10\/photo-18-1.jpg","type":"image\/jpeg"}],"author":"infopal11","twitter_card":"summary_large_image","twitter_creator":"@BNReport","twitter_site":"@BNReport","twitter_misc":{"Written by":"infopal11","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.bnreport.com\/en\/what-derivative-market-hints-for-future-rates\/#article","isPartOf":{"@id":"https:\/\/www.bnreport.com\/en\/what-derivative-market-hints-for-future-rates\/"},"author":{"name":"infopal11","@id":"https:\/\/www.bnreport.com\/en\/#\/schema\/person\/19d1c5a2dd7f60584a09de4a7805d68f"},"headline":"What derivative market hints for future rates?","datePublished":"2018-10-23T22:00:48+00:00","mainEntityOfPage":{"@id":"https:\/\/www.bnreport.com\/en\/what-derivative-market-hints-for-future-rates\/"},"wordCount":365,"publisher":{"@id":"https:\/\/www.bnreport.com\/en\/#organization"},"image":{"@id":"https:\/\/www.bnreport.com\/en\/what-derivative-market-hints-for-future-rates\/#primaryimage"},"thumbnailUrl":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/10\/photo-18-1.jpg","articleSection":["Finance"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.bnreport.com\/en\/what-derivative-market-hints-for-future-rates\/","url":"https:\/\/www.bnreport.com\/en\/what-derivative-market-hints-for-future-rates\/","name":"What derivative market hints for future rates? - Business News Report","isPartOf":{"@id":"https:\/\/www.bnreport.com\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.bnreport.com\/en\/what-derivative-market-hints-for-future-rates\/#primaryimage"},"image":{"@id":"https:\/\/www.bnreport.com\/en\/what-derivative-market-hints-for-future-rates\/#primaryimage"},"thumbnailUrl":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/10\/photo-18-1.jpg","datePublished":"2018-10-23T22:00:48+00:00","description":"MUMBAI: Rest of the world may be on a tightening monetary po..","breadcrumb":{"@id":"https:\/\/www.bnreport.com\/en\/what-derivative-market-hints-for-future-rates\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.bnreport.com\/en\/what-derivative-market-hints-for-future-rates\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.bnreport.com\/en\/what-derivative-market-hints-for-future-rates\/#primaryimage","url":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/10\/photo-18-1.jpg","contentUrl":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/10\/photo-18-1.jpg","width":1070,"height":580},{"@type":"BreadcrumbList","@id":"https:\/\/www.bnreport.com\/en\/what-derivative-market-hints-for-future-rates\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"\u0627\u0644\u0631\u0626\u064a\u0633\u064a\u0629","item":"https:\/\/www.bnreport.com\/en\/"},{"@type":"ListItem","position":2,"name":"What derivative market hints for future rates?"}]},{"@type":"WebSite","@id":"https:\/\/www.bnreport.com\/en\/#website","url":"https:\/\/www.bnreport.com\/en\/","name":"Business News Report","description":"Latest News on the World of Politics & Business","publisher":{"@id":"https:\/\/www.bnreport.com\/en\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.bnreport.com\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.bnreport.com\/en\/#organization","name":"\u0628\u0632\u0646\u0633 \u0631\u064a\u0628\u0648\u0631\u062a \u0627\u0644\u0627\u062e\u0628\u0627\u0631\u064a","url":"https:\/\/www.bnreport.com\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.bnreport.com\/en\/#\/schema\/logo\/image\/","url":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2020\/12\/LOGO2.png","contentUrl":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2020\/12\/LOGO2.png","width":200,"height":50,"caption":"\u0628\u0632\u0646\u0633 \u0631\u064a\u0628\u0648\u0631\u062a \u0627\u0644\u0627\u062e\u0628\u0627\u0631\u064a"},"image":{"@id":"https:\/\/www.bnreport.com\/en\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Business-NewsReport-328225811095934\/","https:\/\/x.com\/BNReport","https:\/\/www.instagram.com\/business.newsreport"]},{"@type":"Person","@id":"https:\/\/www.bnreport.com\/en\/#\/schema\/person\/19d1c5a2dd7f60584a09de4a7805d68f","name":"infopal11","url":"https:\/\/www.bnreport.com\/en\/author\/infopal11\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/posts\/95998","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/comments?post=95998"}],"version-history":[{"count":0,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/posts\/95998\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/media\/95999"}],"wp:attachment":[{"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/media?parent=95998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/categories?post=95998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/tags?post=95998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}