Macro Updates:
The OIS rates, primary instruments for hedging interest rate in India, have plummeted by around 34 bps since early March mirroring the decline in the 10-year US bond yield, which plunged close to 40 bps after the collapse of SVB. Currently, the 1Y OIS suggests that the RBI may raise the repo rate by 25 bps to 6.75%, with some traders even betting on a pause in rate hikes.
March 20, 2023