• On Thursday, the benchmark 10-year government bond (6.48% GS 2035) opened steady at 7.04% • The benchmark yields briefly eased toward 7% levels amid reports that the Government may significantly cut taxes on foreign investors in Indian bonds. • However, some gains were pared after WPI inflation came in elevated at 8.3% versus expectations of 4.5%-5.5%. • The INR closed weaker at 95.77/$, while the DXY hovered around the 98.50 levels. The 10Y IGB (6.48% GS 2035) closed 3 bps lower at 7.02% vs 7.05%. • The latest banking system liquidity stands in surplus of ~INR 2.22 Tn.
