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

4th August 2017.........

FOREIGN EXCHANGE MARKET

News
> The EURUSD traded in the narrow range of USD 1.1831 - 1.1892 while the dollar > The ZAR weakened to a three-week low of 13.3850 per USD yesterday, as a
index hovered near its lowest level in fifteen months in risk off mood ahead of US note on a motion of no-confidence against President Jacob Zuma drew closer.
non farm payrolls due later today.
> The Bank of Mauritius intervened on the domestic foreign exchange market
> The greenback came under pressure following the release of the weaker-than- yesterday as the bid rate of MUR 33.06 per USD.
expected US services sector data and by investigations on the interference of
Russia in the 2016 US elections. > The Pound Sterling is trading lower this morning, post UK data, losing 29
cents on the offer along with the South African Rand, which continues to lose
> The GBPUSD pair plummeted to 1.3113 yesterday, after the Bank of England ground against the local currency due to political turmoil in South Africa.
voted 6-2 to keep interest rates unchanged and lowered its forecasts for growth,
inflation and wages.

> The Australian dollar eased to USD 0.7934, from USD 0.7962 after the RBA
trimmed GDP forecasts for 2017 and cautioned markets about the negative effect
of the strong Aussie.

Daily Technical View

EUR/USD - Yesterday the EUR found support at the 1.1831 level versus the USD in London before making a session high of 1.1892 in New York. In Asia this morning we are
hovering near the high at 1.1880, with EUR bulls poised to make another attempt to break the years high at 1.1910 ahead of the U.S. payrolls data due later today. Intra-
day we expect a 1.1840 - 1.1910 range ahead of the data and 1.1785 - 1.1975 range on the wide.

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 26.17 0.11 27.40 0.11 AUDMUR 26.15 26.13 26.07 27.41 27.45 27.51
CNYMUR 4.87 0.01 5.13 0.01 EURMUR 39.11 39.23 39.42 40.66 40.84 41.15
EURMUR 39.05 0.12 40.57 0.12 ZARMUR 2.44 2.41 2.37 2.56 2.54 2.51
JPYMUR 29.99 0.15 31.32 0.16 USDMUR 32.87 32.88 32.88 34.17 34.23 34.33
ZARMUR 2.45 (0.03) 2.57 (0.03) GBPMUR 43.22 43.31 43.43 44.93 45.09 45.33
USDMUR 32.86 - 34.14 -
GBPMUR 43.18 (0.28) 44.86 (0.29)

EURMUR EURUSD GBPMUR GBPUSD USDMUR USD INDEX

40.90 1.1920 46.25 1.3250 35.50 96.10

40.75 1.1810 45.95 1.3150 35.20 95.40

40.60 1.1700 45.65 1.3050 34.90 94.70

EURMUR

USD INDEX
USDMUR
GBPMUR
EURUSD

GBPUSD

40.45 1.1590 45.35 1.2950 34.60 94.00

40.30 1.1480 45.05 1.2850 34.30 93.30

40.15 1.1370 44.75 1.2750 34.00 92.60

10-Jul 15-Jul 20-Jul 25-Jul 30-Jul 4-Aug 10-Jul 15-Jul 20-Jul 25-Jul 30-Jul 4-Aug 10-Jul 15-Jul 20-Jul 25-Jul 30-Jul 4-Aug

Previous Day Trading Levels Today Major Indices Value at Close Day Change %
Opening High Low Latest DOW JONES 22,016.24 0.04
AUDUSD 0.7948 0.7974 0.7935 0.7960 S&P 500 2,472.16 (0.22)
EURUSD 1.1867 1.1888 1.1870 1.1882 FTSE 100 7,474.77 0.85
GBPUSD 1.3134 1.3145 1.3128 1.3140 DAX 12,154.72 (0.22)
USDJPY 110.02 110.18 109.86 110.09 NIKKEI 225* 19,964.76 (0.32)
USDCHF 0.9683 0.9686 0.9675 0.9683 HANGSENG* 27,539.55 0.03
USDCNH 6.73 6.73 6.72 6.72

Major Economic Releases (at GMT)

Date Time Country Event Period Actual Expected Prior
03-Aug 12 30 US Initial Jobless Claims July 240K 242K 245K
04-Aug 12 30 US Nonfarm Payrolls July - 183K 222K
04-Aug 12 30 US Unemployment Rate July - 4.3% 4.4%

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.........
4th August 2017.........
FIXED INCOME
News
> US Treasury yields retreated modestly yesterday as the latest economic data > UK 10-year Treasury yields were down 7.9 basis points at 1.16 percent, while
painted a mixed picture of the economy, putting greater importance on the July those for the benchmark German bunds slipped by 2.8 basis points at 0.46
employment report, set to be released later today. percent.

> The yield on the benchmark 10-year US Treasury note dipped by 3.4 basis points > Today, the Bank of Mauritius will be issuing the 91-Day and 182-Day Bank of
to 2.230 percent, hitting its lowest level since June 28, while the two-year note Mauritius Treasury Bills for a nominal amount of MUR 1,800 Mio as well as the
yield gave up 2 basis points at 1.343 percent, its largest one-day decline since July 364-day Government of Mauritius Treasury Bills for a nominal amount of MUR
26. 800 Mio.

> The Bank of England made no changes to its monetary policy yesterday, but
indicated that from here, rates may rise faster than markets expect.

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 2.44 2.24 BOM Repo Rate 4.00 4.00

31 to 60 1.67 1.52 3 year 2.70 2.50 Feds Fund Rate 1.00 - 1.25 1.00 - 1.25

61 to 90 1.75 1.60 4 Year 3.05 2.85 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 1.88 1.73 10 Year 4.80 4.55 RBA Cash Rate 1.50 1.50
181 to 240 2.04 1.89 15 year 5.45 5.20

241 to 300 2.06 1.91 20 Year 6.15 5.90 Government Benchmark Yields (%)
301 to 364 2.11 1.96 2 Year 5 Year
Click here to access our Mauritian Bond Market page
US Bonds 1.343 1.791
Local Treasury Bills Market UK Bonds 0.219 0.527

2.25 German Bonds -0.684 -0.233

2.15
Money Market Rates
LIBOR (%) 1 Week 1 Month 3 Months 6 Months
2.05 364
EUR -0.409 -0.401 -0.373 -0.298
Weighted Average Yield

USD 1.196 1.231 1.312 1.451

1.95
182 GBP 0.241 0.255 0.291 0.429

EURIBOR -0.379 -0.373 -0.331 -0.273

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

1.65 EURIBOR - 3m -0.228 0.137 0.404 0.776

31-May 07-Jun 14-Jun 21-Jun 28-Jun 05-Jul 12-Jul 19-Jul 26-Jul
USD LIBOR - 3m 1.604 1.870 2.041 2.215
*Pay fixed and receive floating swap

COMMODITIES
Rolling Gold & Oil Prices News
Gold Price Oil Price > Oil prices retreated as record gasoline demand was outweighed by
1271
concerns about high crude supplies from OPEC.
53.10

> As per report from Thomson Reuters Oil Research, OPEC output hit a 2017
1259 51.80
high of 33 million barrels per day in July.

> Gold prices lost some momentum but remained close to seven-week highs
Gold Price (USD)

Oil Price (USD)

1247 50.50 as the US dollar and bonds yields traded low ahead of US non farm
payrolls today.

1235 49.20

Spot Market Futures Market

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

Brent Crude Oil ($) 53.36 0.81 51.92 (0.24)

1211 46.60
10-Jul 15-Jul 20-Jul 25-Jul 30-Jul 4-Aug Gold ($) 1,268.60 5.90 1268.10 6.30
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