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

7th August 2017.........

FOREIGN EXCHANGE MARKET

News
> The US dollar recovered on Friday amid fresh bets for a third Federal Reserve
interest rate hike this year, after the release of strong US employment report. Non
farm payrolls increased by more than expected in July while the unemployment
rate fell to 4.3 percent and average hourly earning rose 0.3 percent.
> The European single currency retreated sharply against the US dollar on Friday as
markets focused on the US economy. EURUSD fell to low of 1.1729 in the NY
trade but bounced back to USD 1.1801 this morning in Asia.
> The Dollar-Yen pair staged a solid rally on Friday from near 100.00 levels to an
intraday high of 111.05 levels after the non-farm payrolls data bettered
estimates.
> The British pound slid to a one-week low of USD 1.3024 on Friday, pressured by
the Bank of England decision on Thursday to keep its rates unchanged and a
broadly stronger greenback.

> The AUDUSD pair firmed to 0.7950 during the Asian session on the back of rising
iron ore prices and stronger bourses.
> The South African rand retreated to a three year low of 13.4575 against its US
counterpart on Friday, hurt by strong US payrolls report and local political
uncertainty.
> The Bank of Mauritius intervened on the domestic foreign exchange market on
the 3rd August and purchased a total amount of USD 30 Mio at the rate of MUR
33.06 per USD.
> The major currencies are trading lower this morning against the rupee with the
exception of the USD after better than expected US Nonfarm Payrolls.

Daily Technical View

EUR/USD - The expected technical reversal of the bullish move in the pair occurred on Friday after US payrolls data came out stronger than expected. The EUR plummeted
from the days high of 1.1889 to a session low of 1.1729 versus the USD. In Asia this morning the EUR managed to recover to 1.1802 but as long as we stay below 1.1830
resistance level we expect another move to good support level at 1.1720. A clear break of the latter would target 1.1660/85 area where we expect to see good buying
interest.

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 26.11 (0.06) 27.34 (0.06) AUDMUR 26.09 26.07 26.01 27.35 27.39 27.45
CNYMUR 4.87 - 5.13 - EURMUR 38.87 38.99 39.18 40.41 40.59 40.89
EURMUR 38.81 (0.24) 40.32 (0.25) ZARMUR 2.44 2.41 2.37 2.56 2.54 2.51
JPYMUR 29.85 (0.14) 31.18 (0.14) USDMUR 32.91 32.92 32.92 34.21 34.27 34.37
ZARMUR 2.45 - 2.57 - GBPMUR 43.00 43.09 43.21 44.70 44.86 45.10
USDMUR 32.90 0.04 34.18 0.04
GBPMUR 42.96 (0.22) 44.63 (0.23)

EURMUR EURUSD GBPMUR GBPUSD USDMUR USD INDEX

40.90 1.1920 46.20 1.3250 35.50 96.10

40.75 1.1810 45.88 1.3170 35.20 95.40

40.60 1.1700 45.56 1.3090 34.90 94.70

EURMUR

USD INDEX
USDMUR
GBPMUR
EURUSD

GBPUSD

40.45 1.1590 45.24 1.3010 34.60 94.00

40.30 1.1480 44.92 1.2930 34.30 93.30

40.15 1.1370 44.60 1.2850 34.00 92.60

13-Jul 18-Jul 23-Jul 28-Jul 2-Aug 7-Aug 13-Jul 18-Jul 23-Jul 28-Jul 2-Aug 7-Aug 13-Jul 18-Jul 23-Jul 28-Jul 2-Aug 7-Aug

Previous Day Trading Levels Today Major Indices Value at Close Day Change %
Opening High Low Latest DOW JONES 22,026.10 0.30
AUDUSD 0.7915 0.7948 0.7913 0.7939 S&P 500 2,476.83 0.19
EURUSD 1.1766 1.1801 1.1767 1.1796 FTSE 100 7,511.71 0.49
GBPUSD 1.3025 1.3060 1.3030 1.3055 DAX 12,297.72 1.18
USDJPY 110.60 110.85 110.63 110.71 NIKKEI 225* 20,006.78 0.57
USDCHF 0.9726 0.9736 0.9712 0.9721 HANGSENG* 27,682.65 0.44
USDCNH 6.73 6.74 6.73 6.73

Major Economic Releases (at GMT)

Date Time Country Event Period Actual Expected Prior
04-Aug 12 30 US Nonfarm Payrolls July 209K 183K 231K
07-Aug 19 00 US Consumer Credit Change June - $ 15.84B $ 18.41B
08-Aug 12 00 UK NIESR GDP Estimate (3M) July - - 0.3%

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

FIXED INCOME
News
> US Treasuries sold off on Friday, pushing yields higher, after the US Labour
Department report showed that an impressive 209,000 jobs were added in July.
Over the past two months, the US has created nearly 450,000 new jobs, helping
to push the unemployment rate to a 16-year low at 4.3 percent.
> The yield on the benchmark 10-year Treasury note gained 3.9 basis points to
2.269 percent, while the yield on the two-year note added 1.6 basis points to
trade at 1.359 percent, and the 30-year bond climbed by 3.7 basis points to 2.844
percent.
Treasury Market Update.........
7th August 2017.........
> Results of the 364-Day Government of Mauritius Treasury Bills for a nominal
amount of MUR 800 Mio are as follows: out of 9 bids received, only 3 were
successful, with a weighted yield of 2.13 percent.
> As for the Bank of Mauritius 91-Day Treasury bills, out of 12 bids received, only
5 were successful with a weighted yield of 1.75 percent, and the 182-Day Bank
of Mauritius Treasury Bills, out of 7 bids received, 3 were successful with a
weighted yield of 1.87 percent.

> The 10-year German bund yields were at 0.48 percent on Friday.

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

Up to 30 days 1.65 1.50 2 year 2.40 2.20 BOM Repo Rate 4.00 4.00

31 to 60 1.67 1.52 3 year 2.65 2.45 Feds Fund Rate 1.00 - 1.25 1.00 - 1.25

61 to 90 1.80 1.65 4 Year 3.00 2.80 BoE Bank Rate 0.25 0.25

91 to 135 1.85 1.70 5 Year 3.40 3.15 ECB Ref. Rate 0.0 0.0

136 to 180 1.90 1.75 10 Year 4.75 4.50 RBA Cash Rate 1.50 1.50
181 to 240 2.00 1.85 15 year 5.45 5.20

241 to 300 2.07 1.92 20 Year 6.15 5.90 Government Benchmark Yields (%)
301 to 364 2.15 2.00 2 Year 5 Year
Click here to access our Mauritian Bond Market page
US Bonds 1.3589 1.822
Local Treasury Bills Market UK Bonds 0.255 0.558

2.25 German Bonds -0.684 -0.223

2.15
Money Market Rates
LIBOR (%) 1 Week 1 Month 3 Months 6 Months
2.05 364
EUR -0.409 -0.401 -0.373 -0.300
Weighted Average Yield

USD 1.199 1.229 1.312 1.449

1.95
182 GBP 0.238 0.250 0.278 0.413

EURIBOR -0.379 -0.372 -0.329 -0.271

1.85
91
Indicative Generic Swap Rates* (%)
1.75
Tenor 2yr 5yr 7yr 10yr

1.65 EURIBOR - 3m -0.226 0.144 0.414 0.788

16-Jun 23-Jun 30-Jun 07-Jul 14-Jul 21-Jul 28-Jul 04-Aug
USD LIBOR - 3m 1.625 1.902 2.057 2.232
*Pay fixed and receive floating swap

COMMODITIES
Rolling Gold & Oil Prices News
Gold Price Oil Price > Oil prices rose after enduring volatile sessions last week on concerns about
1271
global supply.
53.10

> Crude prices eased this morning ahead of a meeting among oil ministers
1259 51.80
from some OPEC and non-OPEC countries in Abu Dhabi to discuss
compliance to agreed production cuts.
Gold Price (USD)

Oil Price (USD)

1247 50.50 > Gold was hit on Friday by the solid US jobs report, which supported the
greenback and Treasury yields higher.

1235 49.20

Spot Market Futures Market

1223 47.90
Today Change ($) Today Change ($)

Brent Crude Oil ($) 52.99 (0.37) 52.25 0.33

1211 46.60
13-Jul 18-Jul 23-Jul 28-Jul 2-Aug 7-Aug Gold ($) 1,258.23 (10.37) 1257.20 (10.90)
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