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 22-June-2022.

International Market:

- US markets were closed on Monday

- Just to remind everyone,

1. US FED raised rates by 75 bps, the largest rate hike since 1994

2. Swiss National Bank surprised markets with its first rate hike in 15 years

3. Bank of England hiked rates by 25 bps for the fifth consecutive time

- US 10-year on Friday clsoed at 3.26%

Crude Oil Market:

- Crude is trading at $110.80/bbl

- Crude Short Term Range: $106-114

Currency Market:

- Dollar index (DXY) is at: 104.61

- DXY today's range: 104.42 - 104.99

- USDCNY or Chinese yuan is at 6.72

- USDINR with a intra-day high of 78.00, closed at 78.11

Resistance: 77.85

Support: 78.30

Trading strategy for USDINR:

- USDINR to trade range-bound

- 78.00 support is protected and RBI intervention at 78.30

Domestic Market:

- Crude at $110.80/bbl gives comfort to the Indian bond markets, but it won't last long

- 5.74 GS 2026 closed at 7.19% Vs 7.13%

- 6.54 GS 2032 closed at 7.48% Vs 7.42%

- 6.67 GS 2035 closed at 7.60% Vs 7.57%

SDL Auctions:

- AP 9-year @ 7.80%

- 10-year RJ @ 7.83%, AS, MZ @ 7.86%, NG @ 7.88%

- SDL Vs. G-Sec spreads @ 35-40bps

- Knight Research expects the spreads to widen to 55-60 bps in a quarter

Trading Range:

- 6.54 GS 2032: 7.45% - 7.52%

Knight Research's view:

- Knight's trading team took 2 rounds of 5.74 GS 2026 trading with 5-8 bps gain

- Entry near 7.34% yield level looks safe for 5.74 GS 2026

That's it for today.

See you tomorrow with the new episode from Knight Snippets.