Yields end the day flat • The 10-year benchmark government bond (6.33% GS 2035) opened steady at 6.54% on Tuesday with focus on RBI intervention. • Over the day, 10Y yields fell to 6.52% on news report that FPIs were keen on India’s fully accessible route inclusion in Bloomberg Aggregate Index. • Meanwhile, the SDL bond auction of INR 136 Bn sailed through with robust demand however duration papers witnessed a light tail. RBI offered 10Y Tamil Nadu at 7.16%, 10Y Rajasthan at 7.16%, 10Y Uttar Pradesh at 7.18%. • Indian rupee ended steady at INR 88.61/$.The 10Y point closed 1bp lower at 6.53% Vs 6.54%. • The latest banking system liquidity stands in surplus of ~INR 1876.96 Bn.
