• The 10-year benchmark government bond (6.48% GS 2035) opened 1bp lower at 6.71% after US Supreme Court scrapped Trump’s tariffs.. • The 10-year government bond weakened during the day, with the yield touching 6.73% on profit booking. However, the yield dropped tracking the appreciation in INR and fall in 5-year OIS. • Over the day, the cut-off of the INR 250 Bn switch auction came broadly in line with expectations. Now the focus is on tomorrow’s SDL auction of INR 445 Bn broadly in line with the indicative borrowing calendar. • Meanwhile, Indian rupee ended higher at 90.88/$ vs 90.98/$. • The 10Y point closed 2bp lower at 6.70% vs 6.72%.
