Yields end the day higher • On Wednesday, the 10-year benchmark government bond (6.33% GS 2035) opened steady at 6.62% as market participants remained cautious ahead of the US FOMC outcome scheduled post market hours. • Over the day 10Y point hardened as market participants trimmed their positions amid growing expectations of no further rate cut by RBI in upcoming policy. • It triggered stop losses, pushing the 10Y yield to close at 6.66%, its highest level since March 25. • The latest banking system liquidity stands in surplus of ~INR 1848 Bn and RBI will conduct OMO purchase on Thursday for INR 500 Bn.
