• On Wednesday, the 10-year benchmark government bond (6.48% GS 2035) opened 1 bp higher at 6.59%. • Over the day, 10Y point dropped to 6.57% level on short-covering by market participants with focus on SDL Q4 borrowing calendar. • The 10Y point closed 1bp higher at 6.59% vs 6.58% as few participants booked profits before the quarter-end. • Meanwhile, Indian rupee ended lower at 89.87/$ on month-end dollars buying by importers. • The latest banking system liquidity stayed in deficit of ~INR 86.03 Bn. RBI conducted overnight VRR for INR 500 Bn and was partially subscribed at 5.26%.
