Treasury Market Update.........

12th January 2016.........

FOREIGN EXCHANGE MARKET

News
> The US dollar firmed against the euro on improved risk sentiment while > JPY strengthened during the Asia trading hours despite a slightly lower than
markets remain volatile as investors focus on China and plunging commodities. expected current account surplus, as falling stocks and risk aversion sent
investors seeking refuge in the safe haven currency.
> The pound sterling edged up from its 5 1/2 year low against the dollar on
Monday as investors squared their positions. > The US dollar trades stable on the local market for the 3rd consecutive day
as no major economic data has been released since the US jobs data of last
> The canadian dollar hit a 12-year low of 1.4245 against its US counterpart, week.
dragged down by falling oil prices and after investors locked in gains from the
recent rally in the dollar. > The euro tumbles 13 cents against the rupee while the pound sterling is 2
cents down.
> The South African rand plummeted from an all time low of 17.9950 per USD
yesterday as concerns over the chinese economy added to investors worries
about domestic and economic strains.

Daily Technical View

EUR/USD - The pair rejection from yesterdays high of 1.0968 found support at the 1.0850 area (Low 1.0843) and in Asia this morning it is trying to regain the 1.0900
level. Markets are edgy following the rout in equities and players prefer to be nimble, which explain the quick reversal moves that we are witnessing in the last trading
sessions. We suggest to play the 1.0850-1.0925 range intra-day, with breaks risking 1.0800 and 1.0980.

Market Highlights
Indicative Spot Rates Indicative Forward Rates
Bid Offer Bid Offer
Today Change (Rs.) Today Change (Rs.) 1m 3m 6m 1m 3m 6m
AUDMUR 24.52 0.03 25.68 0.04 AUDMUR 24.49 24.42 24.34 25.69 25.72 25.79
CNYMUR 5.30 0.07 5.58 0.07 EURMUR 38.79 38.90 38.93 39.96 40.12 40.39
EURMUR 38.74 (0.13) 39.90 (0.13) ZARMUR 2.08 2.06 2.03 2.18 2.17 2.15
JPYMUR 29.96 (0.04) 31.29 (0.04) USDMUR 35.65 35.73 35.84 36.73 36.86 37.06
ZARMUR 2.09 (0.02) 2.19 (0.02) GBPMUR 51.80 51.90 52.03 53.37 53.54 53.83
USDMUR 35.62 - 36.68 -
GBPMUR 51.77 0.02 53.31 0.02

EURMUR EURUSD GBPMUR GBPUSD USDMUR USD INDEX

41.20 1.1400 55.85 1.5350 37.50 102.50

40.70 1.1200 55.35 1.5200 37.20 101.00

40.20 1.1000 54.85 1.5050 36.90 99.50

EURMUR

USD INDEX
USDMUR
GBPMUR
EURUSD

GBPUSD

39.70 1.0800 54.35 1.4900 36.60 98.00

39.20 1.0600 53.85 1.4750 36.30 96.50

38.70 1.0400 53.35 1.4600 36.00 95.00

38.20 1.0200 52.85 1.4450 35.70 93.50

16-Dec 21-Dec 26-Dec 31-Dec 5-Jan 10-Jan 16-Dec 21-Dec 26-Dec 31-Dec 5-Jan 10-Jan 16-Dec 21-Dec 26-Dec 31-Dec 5-Jan 10-Jan

Previous Day Trading Levels Today Major Indices Value at Close Day Change %
Opening High Low Latest DOW JONES 16,346.45 0.32
AUDUSD 0.6993 0.7003 0.6953 0.6963 S&P 500 1,923.67 0.09
EURUSD 1.0856 1.0893 1.0843 1.0896 FTSE 100 5,871.83 (0.69)
GBPUSD 1.4538 1.4560 1.4515 1.4530 DAX 9,825.07 (0.25)
USDJPY 117.73 117.98 117.24 117.33 NIKKEI 225* 17,218.96 (2.71)
USDCHF 1.0013 1.0026 0.9976 0.9980 HANGSENG* 19,756.73 (0.66)
USDCNH 6.58 6.61 6.57 6.59 *Values are at latest

Major Economic Releases (at GMT)

Date Time Country Event Period Actual Expected Prior
12-Jan 09 30 UK Industrial Production (YoY) Nov - 1.7% 1.7%
12-Jan 09 30 UK Manufacturing Production (YoY) Nov - -0.8% -0.1%
12-Jan 10 30 US Fed's Stanley Fischer speech - - - -
12-Jan 15 00 UK NIESR GDP Estimate Dec - - 0.6%

This commentary is for information only, and the comments and forecasts are intended to be of a general nature, and are current at the date of issue. This document is not intended as an offer, solicitation, or recommendation to buy or
sell financial instruments or for any individual investment.
Source: MCB Treasury, Reuters, Bloomberg, Bank of Mauritius
 Treasury Market Update.........
12th January 2016.........
FIXED INCOME
News
> Long-dated Treasury prices slid yesterday, pushing yields higher, as markets > In the Euro zone, the yield on the 10-year German bund rose 2.1 basis points
shrugged off a plunge in the chinese stock market, a continued rout in oil prices to 0.539 percent.
and weakness in global stocks.
> Meanwhile, US stocks erased small gains yesterday, after dipping in and out of
> The yield on the US 10-year Treasury note gained 2.8 basis points to 2.16 negative territory as a deepening rout in oil prices hit the energy sector on
percent, rebounding from the three-month lows it reached last week, while that the heels of the worst weekly start ever to a new year.
on the 30-year bond advanced 5 basis points to 2.959 percent.
> The Bank of Mauritius will auction a total amount of MUR 1,500 million in
Twenty-Year Government of Mauritius bonds tomorrow.

Market Highlights
Local Secondary Market Government Benchmark Bond Yields (%) Key Central Bank Rates
Current
Bid (%) Offer (%) 2 Year 5 Year 10 Year Previous (%)
Level (%)
91 to 135 3.50 3.30 US Bonds 0.940 1.582 2.160 BOM Repo Rate 4.40 4.65

136 to 180 3.60 3.40 UK Bonds 0.516 1.168 1.773 Feds Fund Rate 0.25 - 0.50 0 - 0.25

181 to 240 3.70 3.50 German Bonds -0.381 -0.108 0.545 BoE Bank Rate 0.50 0.50

241 to 300 3.90 3.70 ECB Ref. Rate 0.05 0.05

301 to 364 4.10 3.90 RBA Cash Rate 2.00 2.00

Local Treasury bills Market Money Market Rates

4.5 LIBOR (%) 1 Week 1 Month 3 Months 6 Months

4 EUR -0.274 -0.219 -0.141 -0.056

3.5
USD 0.386 0.424 0.622 0.851
Weighted Average Yield

364 GBP 0.485 0.513 0.589 0.752

3
EURIBOR -0.259 -0.218 -0.143 -0.051
2.5
182
JIBAR n/a 6.425 6.650 7.533
2

1.5 91
Indicative Generic Swap Rates* (%)
1 Tenor 2yr 5yr 7yr 10yr
0.5 EURIBOR - 3m -0.184 0.136 0.417 0.802
Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
USD LIBOR - 3m 1.021 1.494 1.734 2.001
*Pay fixed and receive floating swap

COMMODITIES
Rolling Gold & Oil Prices News
Gold Price Oil Price
> Oil prices fell sharply to a fresh 12-year low on a sell-off as further turmoil
in the chinese stock market triggered fears that demand from the world
1180 49.00 second biggest oil consumer will decline.

> Oil lost 20 percent since the beginning of the year and traders bet on
1150 46.00
further price falls while analysts cut their 2016 oil price forecasts.

1120 43.00 > Gold prices initially gained on market participants' flight to safety amid
heightened volatility in global stock markets but later retreated on profit
Gold Price (USD)

Oil Price (USD)

taking.
1090 40.00

1060 37.00
Spot Market Futures Market
1030 34.00 Today Change ($) Today Change ($)

Brent Crude Oil ($) 30.25 (1.53) 30.72 (1.89)

1000 31.00
WTI Crude Oil ($) 30.68 (1.66) 30.68 (1.66)

Gold ($) 1,095.95 (11.03) 1,095.20 (12.70)

970 28.00
16-Dec 21-Dec 26-Dec 31-Dec 5-Jan 10-Jan
Silver ($) 13.87 (0.15) 13.86 (0.09)

This commentary is for information only, and the comments and forecasts are intended to be of a general nature, and are current at the date of issue. This document is not intended as an offer, solicitation, or recommendation to buy or
sell financial instruments or for any individual investment.
Source: MCB Treasury, Reuters, Bloomberg, Bank of Mauritius