Treasury Market Update Ma

Foreign Exchange (FX)

Latest Market News
> EUR trades close to the USD 1.3800 level as weaker than anticipated Ger- > JPY strengthened to 102.34/dlr after March industrial output data rose to man inflation figures dragged the single currency down adding to specula 0.3% signalling economic improvement in Japan while BoJ kept monetary tion that the ECB may have to tackle low inflation in the euro zone policy unchanged > Cable dipped sharply on release of lower than expected UK GDP figures > The Rand gained against the greenback trading at 10.5525/dlr although but later recouped some losses to trade at USD 1.6831 after disappointing continued geopolitical tension and unresolved three-month platinum consumer confidence report in the U.S softened demand in the dollar strike weighed over the currency > Aussie recovered from yesterdays low levels and traded at USD 0.9289 in > Against the MUR, AUD, GBP, JPY and ZAR gain 16, 12, 8 and 2 cents the morning session following the release of private sector growth data at respectively while EUR lose 9 cents. USD opens 5 cents higher 0.4%

Daily Technical View

EURUSD: The pair was twice rejected at the 1.3880 resistance area and plummeted to 1.3805 where it opened this morning in Asia. Today, we have a key event risk with the FOMC meeting. Intraday, we expect a 1.3780 - 1.3840 range, and on the wide, 1.3725 - 1.3920 after the meeting

Mauritian Rupee (Indicative Spot Rates)

Buying
Today AUD EUR GBP JPY USD ZAR 26.95 40.70 49.60 28.32 29.71 2.75 Previous 26.80 40.79 49.48 28.24 29.66 2.73 Change Today 28.30 41.92 51.08 29.82 30.60 2.90

Mauritian Rupee (Indicative Forward Rates)

Selling
Previous 28.14 42.01 50.96 29.74 30.55 2.88 Change 1 month 2 month 3 month 6 month Buy 29.767 29.796 29.825 29.902

USD/MUR
Sell 30.671 30.755 30.853 31.187 Buy

EUR/MUR
Sell 42.020 42.139 42.282 42.788 40.740 40.777 40.820 41.013

Spot Rates - Rolling Five Day Chart (Mid-rates)

EUR/USD GBP/USD
30.18

USD/MUR

1.3881

1.3861

Latest Bid - Ask: 1.3801 - 1.3803

1.6840

30.16

Latest Bid - Ask: 1.6806 - 1.6810

1.6820

1.6828
30.15

1.3841

1.3821
30.12

1.3808
1.3801

1.6800

1.3781 24 Apr 25 Apr 28 Apr 29 Apr 30 Apr

1.6780 24 Apr 25 Apr 28 Apr 29 Apr 30 Apr

30.09 24 Apr 25 Apr 28 Apr 29 Apr 30 Apr

Market Highlights (v/s USD)

New York Low AUD* GBP* EUR* CHF JPY 0.9230 1.6795 1.3806 0.8789 102.48 High 0.9281 1.6846 1.3878 0.8845 102.78 Far East Low 0.9264 1.6820 1.3805 0.8834 102.34 High 0.9287 1.6830 1.3815 0.8839 102.66 Low 0.9264 1.6807 1.3798 0.8834 102.30 Latest High 0.9289 1.6830 1.3815 0.8843 102.66

Renminbi Focus (Indicative rates)

CNH/MUR
Buy Spot 1 month 3 month 4.6100 4.6120 4.5930 Sell 4.8500 4.8530 4.8730 Buy 6.2652 6.2736 6.2867

USD/CNH
Sell 6.2666 6.2745 6.2880

* AUD, GBP and EUR are the base currencies

Todays Major Announcements (at GMT)

12 30: US - GDP annualized Q/Q 18 00: US - FOMC rate decision

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.com, FT.com, GBOT, CME, and Bank of Mauritius th *Previous trading prices

30 April 2014

Treasury Market Update Ma

ean

Fixed Income (FI)

Latest Market News
Local Market: > The last T-bills auction was held 25 April 2014 by the BOM for a nominal amount of MUR 600.0 million. Bidding for only the 364-day maturity was offered. Out of the 30 bids received (representing MUR 1610m), 9 were accepted for a nominal amount of MUR 600 million > The weighted yield for the 364-day maturity was 3.00% p.a. > The bank rate as from 25 April 2014 decreased to 2.91% p.a. ( 2.92% previously) > The auction of the 3-year GOM notes was held on 09 April 2014 by the BOM for a nominal amount of MUR 1,300 million. Out of the 31 bids received (representing MUR 3,530m), 11 were accepted for MUR 1,300.0 million. The weighted yield on the notes was 4.17% p.a. and the coupon rate was 4.10% p.a. International Market: > The Bank of Japan kept monetary policy steady on Wednesday, signaling its confidence that the country is making steady progress toward meeting the bank's price target. As expected, the central bank voted unanimously to maintain its pledge of increasing base money, its key policy gauge, at an annual pace of 60 trillion to 70 trillion yen ($587-685 billion). Markets are focusing on the BOJ's semi-annual report which will issue long-term economic and price forecasts including, for the first time, those for fiscal year 2016/17 ending in March 2017 > Britain's economy picked up pace in the first quarter of this year but not quite as fast as economists had been expecting. The Office for National Statistics said on Tuesday that GDP expanded by 0.8% in the first quarter after 0.7% growth in the final three months of last year. That was below economists' forecast of 0.9%, according to the consensus in a Reuters poll

Money & Swap Markets

Local Secondary Market Rates
Yield at which we
Days to maturity 91 to 135 136 to 180 181 to 240 241 to 300 301 to 364 Buy (%) 3.15 3.20 3.20 3.25 3.45 Sell (%) 2.95 3.00 3.00 3.05 3.25 UK Bonds German Bunds 0.144 0.700 0.571 1.956 1.499 2.686

Government Benchmark Bond Yields

2 Year
US Bonds 0.442

5 Year
1.736

10 Year
2.693

International Markets Rates

1 Week LIBOR: EUR USD GBP EURIBOR
0.226% 0.121% 0.463% 0.259%

Change in LIBOR (Today v/s Previous)

3 Month
0.311% 0.225% 0.527% 0.345%

1 Month
0.247% 0.152% 0.487% 0.269%

6 Month
EU R U SD

0.411% 0.323% 0.629% 0.444%

0.005

0.000

Indicative Generic Swap Rates*

Tenor
EURIBOR - 3m USD LIBOR - 3m

-0.005

2yr
0.351% 0.563%

5yr
0.810% 1.817%

7yr
1.170% 2.337%

10yr
1.620% 2.794%

12yr
1.852% 3.010%

15yr
-0.010

2.080%
-0.015 1 Week 1 Month 3 Month 6 Month

3.193%

*Pay fixed and receive floating swap

Key Interest Rates

`
% per annum BOM Repo rate Feds fund rate BOE bank rate ECB refinancing rate China: Working capital rate India: Repo rate Current level 4.65 0 - 0.25 0.50 0.25 6.00 8.00

Cycle
View & Start date Easing: 28 Sept 08 Easing: 17 Sept 07 Easing: 6 Dec 07 Tightening: 7 Apr 11 Tightening: 19 Oct 10 Tightening: 19 Mar 10 Level 8.25 5.25 5.75 1.00 5.31 4.75 Last Move June 13 (-0.25) Dec 08 (-0.75 -1.00) Mar 09 (-0.25) Nov 13 (-0.25) Jul 12 (-0.31) Jan 14 (+0.25) Next Exp Move Q2 2014 Q2 2015 Q3 2014 Q2 2014 Q2 2014 Q4 2014

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.com, FT.com, GBOT, CME, and Bank of Mauritius th *Previous trading prices

30 April 2014

Treasury Market Update Ma

ean

Commodities
Latest Market News
> Gold dipped ahead of Tuesdays Federal Reserve policy meeting, losing ground > Brent slipped towards $108.50 a barrel on Wednesday, dragged down by a near $1 drop in U.S. crude as inventories in the United States were expected for the third consecutive day as investors prepared for another batch of data to hit the highest level on record that, brutal winter aside, should point to an improving U.S. economic climate > Gold for June delivery was off $1.30, or 0.1%, to $1,295 an ounce in electronic trade > A day earlier, gold prices fell for a second straight session as equities were favored in the face of a consumer-confidence reading that touched its highest level since 2008 > Brent crude for June delivery fell 27 cents to $108.71 per barrel by 0420 GMT after climbing 86 cents to $108.98 in the previous session. June U.S. crude dropped 80 cents to $100.48 per barrel after falling by as much as 93 cents in early trade on Wednesday. This reversed Tuesday's gain when U.S. crude rose 44 cents to close at $101.28 per barrel

> Analysts stated that the fall in Brent was "100 percent" due to the drop in U.S. > On the economic front, traders will sift through the ADP employment survey crude for clues as to whats to come with the U.S. governments job report later this > Although Libyan exports are starting to come back, the supply situation from week. Separately, GDP is expected to show a winter-induced slump to an the North African nation is far from clear annual rate of growth of 1%, down from 2.6% in the fourth quarter > Gold as an inflation hedge, does well during periods when policy rates are being held in negative territory in real terms, which Janet Yellen seems to be foreshadowing > The European Union on Tuesday imposed further sanctions on Russia over the Ukraine crisis, freezing assets and issuing new visa bans on Russian officials and Ukrainian rebel leaders, as Russian President Vladimir Putin ruled out counter sanctions. However, it is extremely unlikely sanctions will extend into the crude oil markets

Spot & Futures Markets (in USD)

Today Energy: - Brent Crude Oil - WTI Crude Oil Metals: - Gold - Silver (cents) - Copper (cents)
108.70 100.48

Spot Market Previous

108.23 100.86

Change

Source ICE CME COMEX COMEX CME

Futures Market Today Previous

108.70 100.49 108.26 100.89

Change

1294.99 194.35 308.00

1295.71 195.90 310.00

1294.70 194.70 307.55

1294.00 195.50 308.45

Oil & Gold Focus

Rolling Five Day Gold & Oil Prices Bullish/Bearish Indicator
Oil Price (RHS)

Gold Price (LHS)

1305

102.6 13.00

12.89
1300
Gold Price (USD)

102.0
Oil Price (USD)

12.80

1295

101.4

1294.99
100.8

12.60

1290

100.48
1285 24 Apr 25 Apr 28 Apr 29 Apr 30 Apr 100.2 12.40 24 Apr 25 Apr 28 Apr 29 Apr 30 Apr

Ratio of spot gold price (proxy for financial markets) to spot oil price (proxy for real economy), with a

Contact Us:
treasury@mcb.mu

high ratio indicating that financial markets are bearish and vice-versa

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.com, FT.com, GBOT, CME, and Bank of Mauritius th *Previous trading prices

30 April 2014