• The 10-year benchmark government bond (6.48% GS 2035) opened 1 bp higher at 6.57% on Monday ahead of the OMO purchase auction.. • Over the day, the 10Y yield firmed on profit-booking amid mixed Open Market Operations auction result. At the OMO auction, the cut-off of 6.67%, 2035 bond was lower than the expectations while the cut-offs on the erstwhile 10-year benchmark 6.79%, 2034 bond and on the long-term 7.30%, 2053 bond were better than expectations. The long-term bond prices remained up after the auction result. • However, overall trade volumes remained thin with focus on tomorrow’s supply of state bonds. 15 states will sell INR 354.50 Bln of bonds, sharply higher than INR 153.21 Bln indicated for this week in the Oct-Dec state borrowing calendar. • Indian rupee ended lower at 89.98/$ on dollar demand likely by oil importers. • The 10Y point ended 4bp higher at 6.60% vs 6.56%.
