Good Morning Treasurers,

This is your host Parthesh Shah, from of Knight Fintech and you are listening to Knight Snippets.

Here is what you need to know before going into trade for 17-June-2022.

International Market:

- A big sell_off was seen in equities market readjusting to the new world

- Nasdaq 100 was down by 4.00% and Dow Jones down by 2.42%

- Nervous equities holders took shelter under US treasuries

- US 10-year with this renewed interest now trades at 3.26%

- A shocking 50 bps rate hike from Swiss National Bank (which is first hike in last 15 years)

- Policy rate for Swiss is now -0.25% from -0.75%

- Now, Japan is the only left-out developed countries which has not given any guidance on rate hikes

Crude Oil Market:

- Crude is trading at $118.90/bbl

- Crude Short Term Range: $116-122

Currency Market:

- Dollar index (DXY) is at: 104.02

- DXY today's range: 103.56 - 104.270

- USDCNY or Chinese yuan is at 6.70

- USDINR with a intra-day high of 78.00, closed at 78.10

Resistance: 77.85

Support: 78.30

Trading strategy for USDINR:

- Again, after making an intra-day high of 78.00, USDINR closed at 78.10

- Hence, USDINR is directionless, but equities sell_off by FIIs (if any in Indian markets) will have an additional pressure on USDINR weakness

Domestic Market:

- Indian bonds market started with a positive note with expected 3-4 bps higher, but could not sustain the gains and closed at higher yields

- 5.74 GS 2026 closed at 7.32% Vs 7.31%

- 6.54 GS 2032 closed at 7.61% Vs 7.59%

- 6.67 GS 2035 closed at 7.73% Vs 7.72%

Trading Range:

- 6.54 GS 2032: 7.57% - 7.64%

Knight Research's view:

- Knight Research had a BUY call for 5-year @ 7.31% and at the same time, our research team had suggested a SELL @ 7.26%

- Both the calls were executed perfectly yesterday and 5-year is again @ 7.32%

- Again, 5.74 GS 2026 @ 7.34% looks attractive

That's it for today.

See you next week with the new episode from Knight Snippets.