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

13th January 2016.........

FOREIGN EXCHANGE MARKET

News
> The greenback edged further up as demand for the safe haven yen and euro > The Aussie rebounded to USD 0.7049 in Asian trade this morning amid upbeat
pulled back after the yuan and chinese share markets regained some stability. chinese trade figures and also a recovery in oil and copper prices.

> The US President Barack Obama stated, during the State of the Union address > The USD/JPY pair strengthened to 118.35 on the back of renewed appetite for
"The United States of America, right now, has the strongest, most durable risky assets, after the rebound in Asian stocks and surprising positive chinese
economy in the world. Were in the middle of the longest streak of private- trade data which further boosted the risk-on market profile.
sector job creation in history. More than 14 million new jobs; the strongest two
years of job growth since the 90s; an unemployment rate cut in half. > The pound sterling failed to confirm its shy recovery from yesterday as it
touches a fresh 10-month low this morning against the rupee while the US
> The British Pound nosedived to its lowest level since June 2010 against the dollar breaks the 3-day flat trading to gain 5 cents on the local market.
greenback, reaching 1.4351 yesterday weighed down by disappointing data, as
the UK industrial production and manufacturing data in November came in
below than expectation while investors remain cautious ahead of interest rate
decision on Thursday.

Daily Technical View

EUR/USD - The EUR traded to a session low of 1.0812 against the USD in Asia today as risk-aversion receded following a rise in US and European equities. We have
reached the good support area at 1.0800 and if that level hold we can expect a bounce to 1.0900/50 soon but a downside break may see a sharp move to 1.0715.
Although the USD bulls are in control of the market we think that we may need some more consolidation sessions in the 1.0700 - 1.1000 range before we see a move to
either parity or 1.1500.

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 24.73 0.21 25.90 0.22 AUDMUR 24.70 24.63 24.55 25.91 25.94 26.01
CNYMUR 5.32 0.02 5.60 0.02 EURMUR 38.68 38.79 38.82 39.84 40.00 40.27
EURMUR 38.63 (0.11) 39.78 (0.12) ZARMUR 2.13 2.11 2.08 2.23 2.22 2.20
JPYMUR 29.83 (0.13) 31.15 (0.14) USDMUR 35.70 35.78 35.89 36.78 36.91 37.11
ZARMUR 2.14 0.05 2.24 0.05 GBPMUR 51.61 51.71 51.84 53.18 53.35 53.64
USDMUR 35.67 0.05 36.73 0.05
GBPMUR 51.58 (0.19) 53.12 (0.19)

EURMUR EURUSD GBPMUR GBPUSD USDMUR USD INDEX

41.20 1.1400 55.85 1.5300 37.50 102.50

40.70 1.1200 55.35 1.5150 37.20 101.00

40.20 1.1000 54.85 1.5000 36.90 99.50

EURMUR

USD INDEX
USDMUR
GBPMUR
EURUSD

GBPUSD

39.70 1.0800 54.35 1.4850 36.60 98.00

39.20 1.0600 53.85 1.4700 36.30 96.50

38.70 1.0400 53.35 1.4550 36.00 95.00

38.20 1.0200 52.85 1.4400 35.70 93.50

17-Dec 22-Dec 27-Dec 1-Jan 6-Jan 11-Jan 17-Dec 22-Dec 27-Dec 1-Jan 6-Jan 11-Jan 17-Dec 22-Dec 27-Dec 1-Jan 6-Jan 11-Jan

Previous Day Trading Levels Today Major Indices Value at Close Day Change %
Opening High Low Latest DOW JONES 16,398.57 0.72
AUDUSD 0.6987 0.7048 0.6975 0.7020 S&P 500 1,938.68 0.78
EURUSD 1.0854 1.0862 1.0812 1.0836 FTSE 100 5,929.24 0.98
GBPUSD 1.4443 1.4475 1.4423 1.4455 DAX 9,985.43 1.63
USDJPY 117.64 118.35 117.65 118.16 NIKKEI 225* 17,715.63 2.88
USDCHF 1.0026 1.0061 1.0023 1.0045 HANGSENG* 20,174.27 2.35
USDCNH 6.58 6.58 6.56 6.58 *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 0.9% 1.7% 1.7%
13-Jan 08 00 EU Non-monetary policy ECB meeting - - - -
13-Jan 10 00 EU Industrial Production (YoY) Nov - 1.3% 1.9%
13-Jan 19 00 US Fed's Beige Book - - - -

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.........
13th January 2016.........
FIXED INCOME
News
> Treasury prices rose on Tuesday, pushing the benchmark 10-year yield to its > Elsewhere, bonds of Europes lower-rated nations fell as investors took on 12
lowest level in more than two months amid a fresh drop in oil prices. billion euros ($13 billion) of new supply. Spanish debt saw some of the biggest
declines as the nation sold 9 billion euros of 10-year bonds via banks, after
> The yield on the 10-year US treasury note, the markets benchmark, closed receiving orders for more than 29 billion euros. German and French bonds
down 6 points at 2.100 percent, its lowest point since October 28 2015. were little changed, erasing an earlier drop, after the sales were completed
later in the afternoon.
> Price action in the treasury market has recently been driven by the balance
between strong economic data in the US and a backdrop of global weakness, > The Bank of Mauritius will auction Twenty-Year Government of Mauritius
particularly in China. Bonds maturing on 15 January 2036 today for a total nominal amount of
MUR 1,500 million.

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 1.566 2.131 BOM Repo Rate 4.40 4.65

136 to 180 3.60 3.40 UK Bonds 0.499 1.138 1.749 Feds Fund Rate 0.25 - 0.50 0 - 0.25

181 to 240 3.70 3.50 German Bonds -0.382 -0.104 0.541 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 -0.273 -0.219 -0.141 -0.058

3.5
USD 0.386 0.425 0.624 0.855
Weighted Average Yield

364 GBP 0.485 0.510 0.589 0.751

3
EURIBOR -0.261 -0.219 -0.143 -0.052
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 -0.190 0.124 0.400 0.776
Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
USD LIBOR - 3m 1.020 1.476 1.708 1.976
*Pay fixed and receive floating swap

COMMODITIES
Rolling Gold & Oil Prices News
Gold Price Oil Price
> Crude crashed below the psychological level of USD 30 a barrel in NY on
worries over the global glut, the chinese economy and the stock market
1180 49.00 turmoil. However oil prices recovered this morning, for the first time in
eight days, as US stocks fell more than expected.
1150 46.00
> Gold maintained its downward trend as the dollar firmed further against
some major peers and as a rebound in stock markets undermined the
1120 43.00 metal's appeal as a safe haven.
Gold Price (USD)

Oil Price (USD)

1090 40.00

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

Brent Crude Oil ($) 29.25 (1.00) 31.06 0.34

1000 31.00
WTI Crude Oil ($) 30.79 0.11 30.79 0.11

Gold ($) 1,085.67 (10.28) 1,085.60 (9.60)

970 28.00
17-Dec 22-Dec 27-Dec 1-Jan 6-Jan 11-Jan
Silver ($) 13.83 0.13 13.74 (0.12)

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