Sharekhan Commodities Buzz dated June 19, 2006

[Sunil]

Commodities Buzz [June 19, 2006] Please see the attachment for details Share khan www.sharekhan.com

Summary of Contents   COMMODITIES BUZZ Bullions: Range-bound The market is betting on more US interest rate hikes in the months to come with most analysts forecasting interest rates to touch 5.5-5.75% for the year 2006. Wall Street's biggest bond trading firms are certain that the Federal Reserve will raise interest rates this month, and are expecting another increase in August. The prices of interest rate futures listed on the Chicago Board of Trade show that investors see a 67% chance that the Federal Reserve will boost its key-lending rate to 5.5% in August. The futures show a definite likelihood that policy makers will raise the rate to 5.25% at their meeting on June 28 and 29. Just two weeks ago, there were almost no expectations for an increase in August and the prices of the futures suggested only a minority of the traders forecast higher rates this month. The speed of the turnaround shows that the investors are convinced Federal Reserve Chairman Ben S Bernanke will battle rising prices.

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