• The 10Y benchmark (6.48 GS 2035) opened 3bp higher at 7.03% tracking an overnight rise in Brent crude oil prices and US Treasury yields. • The US 10Y rose after the FOMC kept the policy rates unchanged, with some members of the panel favouring a tighter tone on monetary policy as inflation risks increased. • Over the day, yields stayed fell after better-than-expected cut-off prices set at the INR 290 Bln gilt auction with 6.68% GS 2040 at 7.4168%, 7.43% GS 2076 at 7.7186%. • The 10Y point steady at 7.01% vs 7.00%. • The latest system liquidity stands in surplus of ~INR 2146.81 Bn.
