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

14th January 2016.........

FOREIGN EXCHANGE MARKET

News
> The dollar was initially steady on improved sentiment in global markets following
the release of upbeat chinese December trade data but later lost ground against
the euro as US stocks fell sharply and ahead of the speech by ECB President
Mario Draghi due today.
> The British Pound has lost 300 pips since the beginning of 2016 and is currently
trading around the 1.44 level against the US dollar as concerns over a slower
recovery in the UK and uncertainty surrounding a possible Brexit continues to
weigh on the sterling ahead of this evening Bank of England monetary policy
decision.
> The Aussie remained under pressure and declined to USD 0.6930 as oil prices
trade near 12-year low, while markets shrugged-off upbeat Australian jobs
data, which showed that the unemployment rate held steady in December.
> The japanese currency strengthened to 117.45 against the greenback on the
back of falling prices of the Nikkei the lowest level since September 2015
ahead of the weekly jobless claims and import prices in the US due later today.
> According to monthly reports by the Bank of Mauritius, Year-on-Year inflation
for period of December 2015 rose to 1.3 percent compared to 0.2 percent for
the same period last year.

> The canadian dollar edged lower trading at USD 1.4360 with the continuous > The australian dollar registered its sharpest drop in nearly 5-months against
decline in the oil prices as Canada is highly dependent on oil exports for its the rupee to trade at 25.490 while the japanese yen touched a high of more
revenues. than 2 years. The US dollar is playing in a tight range losing 5 cents from
yesterday as the euro recovered slightly.

Daily Technical View

EUR/USD - As suspected the good support level at 1.0800 held the downside attempt (low 1.0806) and we rebounded strongly to 1.0895 in Asia this morning, we are
back at the top of the intra-day range 1.0800-1.0900 and on the wide 1.0700 - 1.1000. Not much to add as the gyrations in the pair is playing second fiddle to what is
happening in the G10 crosses. The EUR/USD pair is trading almost at the same level as on the opening day of 2016 while the AUD, CAD and GBP has lost almost 300,
500 and 330 pips respectively against the dollar.

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 24.34 (0.39) 25.49 (0.41) AUDMUR 24.31 24.24 24.16 25.50 25.53 25.60
CNYMUR 5.28 (0.04) 5.56 (0.04) EURMUR 38.83 38.94 38.97 40.00 40.16 40.43
EURMUR 38.78 0.15 39.94 0.16 ZARMUR 2.11 2.09 2.06 2.21 2.20 2.18
JPYMUR 30.00 0.17 31.33 0.18 USDMUR 35.65 35.73 35.84 36.73 36.86 37.06
ZARMUR 2.12 (0.02) 2.22 (0.02) GBPMUR 51.33 51.42 51.56 52.89 53.06 53.35
USDMUR 35.62 (0.05) 36.68 (0.05)
GBPMUR 51.30 (0.28) 52.83 (0.29)

EURMUR EURUSD GBPMUR GBPUSD USDMUR USD INDEX

41.20 1.1400 55.35 1.5150 37.50 102.50

40.70 1.1200 54.85 1.5000 37.20 101.00

40.20 1.1000 54.35 1.4850 36.90 99.50

EURMUR

USD INDEX
USDMUR
GBPMUR
EURUSD

GBPUSD

39.70 1.0800 53.85 1.4700 36.60 98.00

39.20 1.0600 53.35 1.4550 36.30 96.50

38.70 1.0400 52.85 1.4400 36.00 95.00

38.20 1.0200 52.35 1.4250 35.70 93.50

18-Dec 23-Dec 28-Dec 2-Jan 7-Jan 12-Jan 18-Dec 23-Dec 28-Dec 2-Jan 7-Jan 12-Jan 18-Dec 23-Dec 28-Dec 2-Jan 7-Jan 12-Jan

Previous Day Trading Levels Today Major Indices Value at Close Day Change %
Opening High Low Latest DOW JONES 16,516.22 (2.21)
AUDUSD 0.6952 0.6968 0.6920 0.6967 S&P 500 1,890.28 (2.50)
EURUSD 1.0878 1.0896 1.0867 1.0873 FTSE 100 5,960.97 0.54
GBPUSD 1.4403 1.4429 1.4390 1.4413 DAX 9,960.96 (0.25)
USDJPY 117.66 117.92 117.31 117.88 NIKKEI 225* 17,240.95 (2.68)
USDCHF 1.0056 1.0084 1.0053 1.0080 HANGSENG* 19,874.02 (0.31)
USDCNH 6.57 6.61 6.57 6.60 *Values are at latest

Major Economic Releases (at GMT)

Date Time Country Event Period Actual Expected Prior
14-Jan 00 30 AU Unemployment Rate Dec 5.8% 5.9% 5.8%
14-Jan 12 00 UK BoE Interest Rate Decision - - 0.5% 0.5%
14-Jan 12 30 EU ECB Monetary Policy Meeting - - - -
14-Jan 13 30 UK Intial Jobless Claims Jan - 2.215M 2.230M

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.........
14th January 2016.........
FIXED INCOME
News
> Treasury prices rose yesterday, pushing yields lower after a renewed selloff in > In the auction for Twenty-Year Bonds, the Bank of Mauritius received 81 bids
commodity and equity markets sent investors running for the perceived safety of from which 37 were accepted at the weighted yield of 7.44 percent for total
US government debt. nominal value of MUR 1,500.0 Mio.

> The yield on the benchmark US 10-year note dived toward 2 percent, as a new
round of large price declines in US stocks heightened concerns over riskier
assets and the global economy.

> The yield on the two-year note declined 1.2 basis points to 0.911percent, while
that on the 30-year bond fell 5 basis points to 2.848 percent.

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 0.915 1.527 2.093 BOM Repo Rate 4.40 4.65

136 to 180 3.60 3.40 UK Bonds 0.495 1.115 1.742 Feds Fund Rate 0.25 - 0.50 0 - 0.25

181 to 240 3.70 3.50 German Bonds -0.379 -0.128 0.507 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 -0.221 -0.141 -0.059

3.5
USD 0.386 0.426 0.622 0.860
Weighted Average Yield

364 GBP 0.485 0.511 0.589 0.749

3
EURIBOR -0.261 -0.220 -0.144 -0.053
2.5
182
JIBAR n/a 6.433 6.658 7.525
2

1.5 91
Indicative Generic Swap Rates* (%)
1 Tenor 2yr 5yr 7yr 10yr
0.5 EURIBOR - 3m -0.192 0.112 0.380 0.751
Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
USD LIBOR - 3m 0.977 1.445 1.682 1.946
*Pay fixed and receive floating swap

COMMODITIES
Rolling Gold & Oil Prices News
Gold Price Oil Price
> Commodity prices slid, with oil prices trading back towards its 12-year low
and copper falling to its lowest level since May 2009 on reinforced fears
1180 49.00 over the global economy and the decreasing demand from China.

> Russia Deputy Finance Minister Maxim Oreshkin stated in an interview that
1150 46.00
persistently low crude prices may lead to the closure of some oil
producers in the coming months.
1120 43.00
> Gold prices rebounded this morning on safe haven bids after upbeat
Gold Price (USD)

Oil Price (USD)

chinese trade data boosted the value of the precious metal.

1090 40.00

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

Brent Crude Oil ($) 28.69 (0.56) 30.35 (0.71)

1000 31.00
WTI Crude Oil ($) 30.80 0.01 30.80 0.01

Gold ($) 1,091.95 6.28 1,087.50 1.90

970 28.00
18-Dec 23-Dec 28-Dec 2-Jan 7-Jan 12-Jan
Silver ($) 14.09 0.26 14.15 0.40

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