Market Update.....

15th June 2020.....

FOREIGN EXCHANGE MARKET

News
> The US dollar rose broadly on active short covering while the US Federal Reserve
Chairman Jerome Powell is largely expected to reiterate the gloomy picture of the
US economy in his semi-annual policy report to Congress this week.
> This week Japan, Switzerland and the UK will hold their monetary policy meetings.
while in the US unemployment claims will once again be a focus with retail sales
for the month of May due for release on Tuesday.
> EUR/USD settled at 1.1250, recovering from a weekly low of 1.1213 while this
Monday, the EU will publish the April trade balance.
> The GBP/USD pair fell to 1.2473, its lowest for the week, as UK data came in much
worse than expected as the GDP monthly estimate shrank a record 20.4 percent
in April.
> USD/JPY edged higher on Friday after falling for four consecutive days, ending the
week around 107.35.
> Fresh bearish pressure weighs on the Aussie dollar today as the AUD/USD pair is
plumbed by disappointing China's May Retail Sales and Industrial Output.
> USD/CAD opened above 1.3600 today as the pair rises further away from last week's
15-week low and falling oil prices are of no help to the Loonie.
> The South African rand recovered slightly on Friday as investors returned to riskier
assets following a steep selloff a day earlier.
> During the week ended 12 June 2020, the Bank of Mauritius intervened twice on
the domestic foreign exchange market and sold a total amount of USD 20 Mio as
follows: on 8 June 2020, USD 10 Mio at MUR 39.65/USD and on 12 June 2020,
USD 10 Mio at MUR 39.70/USD.
> This morning, the USD/MUR sheds 5 cents compared to Friday’s open, with the
market awaiting the US Retail Sales data this week. The EUR/MUR and GBP/MUR
see some respite, shedding 20 cents and 29 cents respectively.

Daily Technical View

EUR/USD - The EUR tumbled to a session low of 1.1213 against the USD on Friday as investors unwound the risk rally which underpinned the single currency. In Asia this
morning the market has recovered to a session high of 1.1260 and we are likely to start the week trading in a 1.1200-1.1320 range, with break targeting 1.1110 on the
downside and 1.1380 on the upside.

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 26.66 (0.14) 27.73 (0.14) AUDMUR 26.65 26.61 26.55 27.75 27.78 27.82
CNYMUR 5.53 (0.01) 5.81 (0.01) EURMUR 44.00 44.01 43.99 45.34 45.42 45.53
EURMUR 43.99 (0.19) 45.31 (0.20) ZARMUR 2.24 2.23 2.19 2.39 2.38 2.37
JPYMUR 36.26 (0.04) 37.71 (0.04) USDMUR 39.24 39.20 39.11 40.16 40.18 40.20
ZARMUR 2.25 0.01 2.40 0.01 GBPMUR 48.89 48.85 48.76 50.39 50.42 50.48
USDMUR 39.25 (0.05) 40.15 (0.05)
GBPMUR 48.90 (0.28) 50.37 (0.29)

EURMUR EURUSD GBPMUR GBPUSD USDMUR USD INDEX

45.80 1.1380 51.40 1.2780 40.55 100.50

45.36 1.1258 50.88 1.2644 40.45 99.50

44.92 1.1136 50.36 1.2508 40.35 98.50

EURMUR

GBPMUR

USDMUR

USD INDEX
EURUSD

GBPUSD

44.48 1.1014 49.84 1.2372 40.25 97.50

44.04 1.0892 49.32 1.2236 40.15 96.50

43.60 1.0770 48.80 1.2100 40.05 95.50

21-May 26-May 31-May 5-Jun 10-Jun 15-Jun 21-May 26-May 31-May 5-Jun 10-Jun 15-Jun 21-May 26-May 31-May 5-Jun 10-Jun 15-Jun

Previous Day Trading Levels Today Major Indices Value at Close Day Change %
Opening High Low Latest DOW JONES 25,128.17 1.90
AUDUSD 0.6831 0.6846 0.6780 0.6789 S&P 500 3,041.31 1.31
EURUSD 1.1245 1.1268 1.1227 1.1237 FTSE 100 6,105.18 0.47
GBPUSD 1.2529 1.2540 1.2456 1.2467 DAX 11,949.28 (0.18)
USDJPY 107.32 107.57 107.01 107.23 CAC 40 4,839.26 0.49
USDCHF 0.9523 0.9536 0.9507 0.9533 NIKKEI 225 22,048.14 (1.15)
USDCNH 7.07 7.10 7.08 7.09 HANGSENG 23,719.26 (2.40)

Major Economic Releases (at GMT)

Date Time Country Event Period Actual Expected Prior
16-Jun 06 00 DE Harmonized Index of Consumer Prices May - 0.8% 0.5%
16-Jun 12 30 US Retail Sales Control Group May - 3.8% -15.3%
17-Jun 06 00 UK Consumer Price Index (YoY) May - 0.5% 0.8%
17-Jun 12 30 CA BoC Consumer Price Index Core (YoY) May - 1.4% 1.2%

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
> Treasury yields edged higher on Friday, after four straight daily declines, as US
equity markets partially recouped their biggest one day plunge since March on
Thursday, amid worries that the pace of the coronavirus spread was picking up.
> The bond-market took its cues from its equity counterparts, after the S&P 500
and Dow Jones Industrial Average booked modest gains on Friday, following their
biggest daily tumble since March as markets were roiled by concerns that the
COVID-19 pandemic was spreading again across the US.
> The 10-year US Treasury yield gained 4.7 basis points to trade at 0.698 percent,
while the 2-year note rate edged 1.4 basis points higher to 0.191 percent.
Market Update.....
15th June 2020.....
> The result of the 5-year Bank of Mauritius Bonds was as follows: a first allocation
was made for an amount of MUR 1,100 Mio only out of the MUR 5,000 Mio initially
issued at the weighted average yield of 1.80 percent and a bid to cover ratio of 10.45.
A further allocation of MUR 5,350 Mio was made at the weighted average yield of
1.80 percent.
> As for the 182-Day Government of Mauritius Treasury Bills, the weighted average
yield was published at 0.54 percent with a bid to cover ratio of 1.83 for the total of
MUR 3,000 Mio allocated.
> The BoM published the Principle Interest Rates report on Friday depicting the
average deposit rate of Banks at 0.71 percent for the month of April 2020 and the
weighted average lending rate was published at 4.90 percent for the same month.

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

1M 0.45 0.30 2 year 1.00 0.80 BOM Repo Rate 1.85 2.85

2M 0.45 0.30 3 year 1.25 1.05 Fed Funds Rate 0.00 - 0.25 0.00 - 0.25

3M 0.45 0.30 4 Year 1.55 1.35 BoE Bank Rate 0.10 0.10

4M 0.50 0.35 5 Year 1.95 1.70 ECB Ref. Rate 0.00 0.00

6M 0.60 0.45 10 Year 2.45 2.20 RBA Cash Rate 0.25 0.25
8M 0.62 0.47 15 year 2.85 2.60

10M 0.63 0.48 20 Year 3.20 2.95 Government Benchmark Yields (%)
1Y 0.70 0.55 2 Year 5 Year
Click here to access our Mauritian Bond Market page
US Bonds 0.179 0.302
Local Treasury Bills Market UK Bonds -0.052 0.007

2.50 German Bonds -0.678 -0.672

Money Market Rates

2.03
LIBOR* (%) 1 Week 1 Month 3 Months 6 Months
Weighted Average Yield

364 EUR -0.528 -0.464 -0.392 -0.260

1.56
USD 0.110 0.195 0.321 0.432

182 GBP 0.057 0.095 0.198 0.348

1.09
EURIBOR -0.515 -0.482 -0.366 -0.199
* LIBOR rates delayed by 48 hours. Source: ICE
91
0.62
Indicative Generic Swap Rates* (%)
Tenor 2yr 5yr 7yr 10yr
EURIBOR - 3m -0.418 -0.374 -0.304 -0.174
0.15
28-Feb 14-Mar 29-Mar 13-Apr 28-Apr 13-May 28-May 12-Jun USD LIBOR - 3m 0.264 0.367 0.499 0.662
*Pay fixed and receive floating swap

COMMODITIES
Rolling Gold & Oil Prices News
Gold Price Oil Price > Oil prices maintained the downtrend and extended last week’s decline on the
1,750 43.00 back of increasing new COVID-19 cases in the US, China and Japan as well. Fear
of a second wave spiked during the weekend and weighed on an already lengthy
recovery demand in the oil market.
1,736 41.00
> Gold prices ended the last session higher, up by more than 3 percent, before
giving up some of its gains this morning in Asian trading amid increasing investor
Gold Price (USD)

Oil Price (USD)

1,722 39.00 fears on resurgence of the COVID-19 virus in several countries.

1,708 37.00

Spot Market
1,694 35.00
Today Change ($)

Brent Crude Oil ($) 38.91 0.58

1,680 33.00
21-May 26-May 31-May 5-Jun 10-Jun 15-Jun Gold ($) 1,720.19 (9.57)
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