Yields end the day better • On Tuesday, the 10-year benchmark government bond (6.33% GS 2035) opened 1bp higher at 6.54. • Over the day, market participants remained focused on the US FOMC meeting scheduled for tomorrow night, particularly in light of the ongoing US government shutdown, with expectations of dovish signals on the interest rate outlook. • SDL auction cut-off witnessed a mixed participation with a tail in few tenures due to tepid demand. RBI offered 10Y Sikkim SDLs at 7.23%, in line with market consensus, while, 30-year bond cut-off was at 7.3884%. • India’s Index of Industrial Production (IIP) rose 4% year-on-year in September, up from 3.2% in the same period last year. • The 10Y point closed 1 bp higher at 6.54% vs 6.53%.
