Market Update.....

23rd June 2020.....

FOREIGN EXCHANGE MARKET

News
> The greenback ended lower across the board on Monday due to the return of > AUD/USD momentarily plunged deep below 0.6900 this morning after comments
risk-on trade as businesses globally start to reopen after the coronavirus that the US-China trade deal was over surfaced. Those comments have been pulled.
pandemic lockdown restrictions.
> The Canadian dollar strengthened yesterday as investors focused on the Wall Street
> EUR/USD pair hit a daily high of 1.1281 as the EU consumer confidence improved rally, ignoring the prospect of a long period of stimulus from the BoC.
to -14.7 in June from -18.8 while investors are now looking to European business
activity surveys due later in the day. > South African rand steadied against the dollar on Monday as investors await for a
supplementary budget due on Wednesday that is expected to show a markedly
> The GBP/USD pair rallied to 1.2476 amid broad dollar weakness while the BOE wider budget deficit.
Governor Andrew Bailey hit the wires on Monday stating that the Central Bank
would need to reduce its balance sheet before raising rates significantly. > The USD/MUR sheds 5 cents this morning, while the EUR/MUR and GBP/MUR both
gained 23 cents and 31 cents respectively.
> USD/JPY recovered to 107.20 from session lows near 106.75 in Asian trade this
morning after US President Donald Trump indicated that the China trade deal is
not over.

Daily Technical View

EUR/USD - A recovery in equities boosted risk-appetite and thus enabling the EUR to trade to a session high of 1.1281 in Asia this morning. The technical break above the
falling wedge at 1.1230 level bodes well in the pair for more upside towards 1.1350 but key-resistance at 1.1420 is expected to cap any further rally.

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 27.07 0.15 28.15 0.15 AUDMUR 27.06 27.04 27.02 28.18 28.24 28.34
CNYMUR 5.56 - 5.84 - EURMUR 44.13 44.17 44.26 45.49 45.61 45.84
EURMUR 44.12 0.23 45.44 0.23 ZARMUR 2.22 2.21 2.18 2.37 2.36 2.35
JPYMUR 36.34 (0.15) 37.79 (0.16) USDMUR 39.34 39.32 39.33 40.27 40.33 40.47
ZARMUR 2.23 - 2.37 - GBPMUR 48.83 48.83 48.85 50.34 50.43 50.62
USDMUR 39.35 (0.05) 40.25 (0.05)
GBPMUR 48.84 0.30 50.31 0.31

EURMUR EURUSD GBPMUR GBPUSD USDMUR USD INDEX

45.70 1.1380 51.20 1.2780 40.35 98.50

45.50 1.1314 50.90 1.2684 40.29 97.96

45.30 1.1248 50.60 1.2588 40.23 97.42

EURMUR

GBPMUR

USDMUR

USD INDEX
EURUSD

GBPUSD

45.10 1.1182 50.30 1.2492 40.17 96.88

44.90 1.1116 50.00 1.2396 40.11 96.34

44.70 1.1050 49.70 1.2300 40.05 95.80

29-May 3-Jun 8-Jun 13-Jun 18-Jun 23-Jun 29-May 3-Jun 8-Jun 13-Jun 18-Jun 23-Jun 29-May 3-Jun 8-Jun 13-Jun 18-Jun 23-Jun

Previous Day Trading Levels Today Major Indices Value at Close Day Change %
Opening High Low Latest DOW JONES 25,871.46 0.59
AUDUSD 0.6908 0.6934 0.6859 0.6900 S&P 500 3,117.86 0.65
EURUSD 1.1258 1.1281 1.1234 1.1264 FTSE 100 6,244.62 (0.76)
GBPUSD 1.2465 1.2506 1.2437 1.2459 DAX 12,262.97 (0.55)
USDJPY 106.90 107.21 106.75 107.13 CAC 40 4,948.70 (0.62)
USDCHF 0.9474 0.9493 0.9467 0.9478 NIKKEI 225 22,666.16 1.00
USDCNH 7.06 7.09 7.06 7.08 HANGSENG 24,762.61 1.03

Major Economic Releases (at GMT)

Date Time Country Event Period Actual Expected Prior
23-Jun 08 00 EU Markit PMI Composite Jun - 41.0 31.9
23-Jun 08 30 UK Markit Services PMI Jun - 39.5 29.0
25-Jun 12 30 US Initial Jobless Claims Jun - 1300K 1508K
25-Jun 12 30 US GDP Annualized Q1 - -5% -5%

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
 Market Update.....
23rd June 2020.....
FIXED INCOME
News
> US Treasury yields held their ground yesterday as investors closely watch > The 10-year Treasury note yield gained 0.8 basis point to 0.704 percent, while the
developments on the COVID-19 pandemic, amid signs the number of infections 2-year note rate was up by 0.6 basis point to 0.192 percent. The 30-year bond
across the US is picking up. yield dropped 0.8 basis point to 1.461 percent.

> The World Health Organization reported around 180,000 new coronavirus cases
on Sunday, the single-largest increase since the pandemic began, with two thirds
of new cases coming from the Americas. Around half of the 50 US states were also
reporting a rise in new coronavirus cases, threatening to undo the months of
progress made through harsh lockdown measures used to stem the virus spread.
> Tomorrow, the Bank of Mauritius will hold the auction for the Re-opening of the
0.72 percent two-year Government of Mauritius Treasury Notes for a nominal
amount of MUR 3,000 Mio.

Market Highlights
Local Secondary Market T-Bills Local Secondary Market T-Bonds Key Central Bank Rates
Bid (%) Offer (%) Bid (%) Offer (%) Current (%) Previous (%)

1M 0.75 0.60 2 year 1.25 1.05 BOM Repo Rate 1.85 2.85

2M 0.80 0.65 3 year 1.45 1.25 Fed Funds Rate 0.00 - 0.25 0.00 - 0.25

3M 0.85 0.70 4 Year 1.75 1.55 BoE Bank Rate 0.10 0.10

4M 0.90 0.75 5 Year 2.05 1.80 ECB Ref. Rate 0.00 0.00

6M 0.95 0.80 10 Year 2.45 2.20 RBA Cash Rate 0.25 0.25
8M 0.98 0.83 15 year 2.85 2.60

10M 1.02 0.87 20 Year 3.20 2.95 Government Benchmark Yields (%)
1Y 1.05 0.90 2 Year 5 Year
Click here to access our Mauritian Bond Market page
US Bonds 0.1918 0.332
Local Treasury Bills Market UK Bonds -0.069 -0.023

2.50 German Bonds -0.685 -0.681

Money Market Rates

2.03
LIBOR* (%) 1 Week 1 Month 3 Months 6 Months
Weighted Average Yield

364 EUR -0.530 -0.487 -0.415 -0.300

1.56
USD 0.113 0.190 0.305 0.415

182 GBP 0.054 0.103 0.165 0.314

1.09
EURIBOR -0.516 -0.507 -0.407 -0.234
* LIBOR rates delayed by 48 hours. Source: ICE
91
0.62
Indicative Generic Swap Rates* (%)
Tenor 2yr 5yr 7yr 10yr
EURIBOR - 3m -0.464 -0.408 -0.338 -0.210
0.15
6-Mar 21-Mar 5-Apr 20-Apr 5-May 20-May 4-Jun 19-Jun USD LIBOR - 3m 0.261 0.373 0.521 0.686
*Pay fixed and receive floating swap

COMMODITIES
Rolling Gold & Oil Prices News
Gold Price Oil Price > Oil prices were mixed overnight as tensions between the US and China re-
1,760 44.00 emerged after comments from White House trade adviser Peter Navarro,
stating that the trade deal is over, pressured oil prices while more signs of fuel
demand were noted after the re-opening of some US states and countries
1,744 42.20 around the world.

> Gold prices kept strong as fear of a second wave of the COVID-19 dampened
Gold Price (USD)

Oil Price (USD)

1,728 40.40 investors’ risk appetite and drove them to the safe-haven. At least 22 of the
50 US states have reported a rise in the virus while South Korea and China are
fighting new outbreaks.
1,712 38.60

Spot Market
1,696 36.80
Today Change ($)

Brent Crude Oil ($) 43.69 0.20

1,680 35.00
29-May 3-Jun 8-Jun 13-Jun 18-Jun 23-Jun Gold ($) 1,751.94 (2.52)
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