• On Friday, the 10-year benchmark government bond (6.48% GS 2035) opened 1bp higher at 6.65% ahead of IGB weekly auction. • Over the day, the 10Y point hardened at 6.67% on short-selling by market participants. However, the treasuries recovered some losses after the weekly bond auction result. • However, Indian rupee depreciated to a fresh record low of 91.97/$, just shy of the psychologically crucial 92/$ level, owing to losses in domestic equities and dollar purchases for importers. • The 10Y point closed 2 bps higher at 6.66% vs 6.64%. • The latest banking system liquidity stands in surplus of ~INR 101.7 Bn.
