• On Wednesday, the 10-year benchmark government bond (6.48% GS 2035) opened 1bp lower at 6.67% on speculation from some participants of RBI’s on screen buying on Tuesday. • The 'Others' segment of gilt market participants, which includes insurance companies, provident funds, and the RBI, net bought gilts worth INR 74.84 Bn on Tuesday. • T-Bill auction worth $3.74 Bn (INR 340 Bn) was fully subscribed and cut offs were, 3M-5.2998%, 6M-5. 5096% and 1Y-5.5863%. • The latest banking system liquidity stands in surplus of INR 2342.66 Bn. The 10Y point closed flat at 6.68%. • Market participants now look forward to weekly IGB auction on Friday for further directions. 6.48 GS 2035 being in auction for INR 320 Bn.
