• The 10-year benchmark government bond (6.48% GS 2035) opened 6bp lower at 6.71% after India and the US agreed on a long-awaited trade deal. • Over the day, 10Y yield hardened on some profit-booking by market participants. • Meanwhile, the SDL auction result came broadly in line with market expectations. RBI offered 10Y Uttar Pradesh at 7.57%, 11Y Maharashtra at 7.54%, 11Y Uttar Pradesh at 7.60%. • Indian rupee appreciated against the dollar to close at 90.27/$, posting its biggest single-day gain in over 7 years, as India and the US announced the much-awaited trade deal, which reduced US tariffs on Indian goods. Trump late Monday said India and the US have concluded the trade deal under which US will cut reciprocal tariffs on Indian goods to 18% from 25%. • The 10Y point ended 5bps lower at 6.72% vs 6.77%.
