• On Thursday, the 10-year benchmark government bond (6.48% GS 2035) opened flat at 6.65%. • Over the day, IGB 10y bond yields stayed lower on optimism about support from the Reserve Bank of India through on-screen purchases and further Open Market Operation auctions. • Meanwhile, Indian rupee ended at 91.63/$ vs 91.70/$ on likely RBI intervention. • The focus has shifted to tomorrow’s weekly bond auction of INR 330 Bn. • The 10Y point ended 1bp lower at 6.64% vs 6.65%. The latest banking system liquidity turned into deficit of ~INR 61.21 Bn on outflows for GST payments
