Yields end the day higher • The 10-year benchmark government bond (6.33% GS 2035) opened flat at 6.57% on Tuesday. • Over the day, 10Y yields hardened further on selling by foreign banks and likely foreign portfolio investors. The sentiments were further dampened after the state development loan auction cut-off. • The SDL auction worth ~INR 154.99 Bn witnessed tepid demand with tailish cut-off seen in some papers. RBI offered 10Y Maharashtra at 7.29%, 10Y Tamil Nadu at 7.3197% while 20Y Punjab at 7.55%. • Meanwhile, Indian rupee ended on a higher note at INR 89.88/$. The 10Y point closed 5bps higher at 6.62% vs 6.57%. • The latest banking system liquidity stands in surplus of ~INR 1513.58 Bn.
