India swaps end steady in thin trading; Fed eyed

MUMBAI, Nov 4 - Indian rate swaps ended little changed on Wednesday and volumes were thin as investors stayed on the sidelines ahead of key U.S. data, traders said.

The benchmark five-year swap ended at 6.67/71 percent, barely moved from the previous close of 6.66/70, at which level it was the lowest since Oct. 5, according to Thomson Reuters data.

Swap rates had fallen on Tuesday after finance minister Pranab Mukherjee said that India will maintain its fiscal stimulus due to uncertainty arising from a poor monsoon and the global outlook. [ID:nBOM481419].

"Swaps opened a little higher in the morning but activity was very low in the absence of clues," said a dealer at a brokerage.

Traders said the rate decision by the U.S. Federal Reserve later in the day and monthly jobs data on Friday could impact the OIS market in India, where foreign banks are major players.

"No one wants to add fresh positions before key events like Fed," said a trader at a private bank.

Total volume in swaps was at 18.01 billion rupees at the central bank's reporting platform, compared with 18.75 bilion rupees on Tuesday.