• On Wednesday, the 10-year benchmark government bond (6.94% GS 2036) opened steady at 6.78% as market participants awaited the FOMC policy outcome due post market hours. • Over the day yields hardened tracking a rise in Brent crude after fresh Middle East tensions overnight, heightened uncertainty over US Iran peace talks. • In the Weekly T-Bill auction, RBI offered 3M T-Bill at 5.34%, 6M at 5.60% and 1Y at 5.74%. • The 10Y point closed 2 bps higher at 6.80% vs 6.78%, as some participants likely trimmed the positions ahead of FOMC policy outcome. • The latest banking system liquidity stayed in surplus of ~INR 1.06 Tn.
