• The 10-year benchmark government bond (6.48% GS 2035) opened 1bp lower at 6.67% tracking the fall in US treasury yields post weak inflation data. • During the day, the local bond weakened, with the yield touching 6.68% on profit booking. The focus is on tomorrow’s SDL auction of INR 379 Bn against INR 390 Bn indicated in the borrowing calendar. • Meanwhile, Indian rupee ended steady at 90.65/$ vs 90.64/$ on lacklustre trading due to US holiday. • The 10Y point closed 2bp lower at 6.66% vs 6.68%. • The latest banking system liquidity stands in surplus of ~INR 3176.03 Bn.
