Yields end the day better • On Friday, the 10-year benchmark government bond (6.33% GS 2035) opened steady at 6.53%. • Over the day, the 10Y bond yield hardened tracking sharp depreciation in Indian rupee. Indian rupee dropped to a record low of 89.50/$ amid chatter of lack of RBI intervention, stop-losses getting triggered and the lack of movement on the India-US trade talks front. • The weekly IGB auction featured duration paper, the 5yr IGB cutoff came broadly in line, but 50yr came in better than expected. • RBI conducted 7-day VRR for INR 500 Bn. The demand was subdued as INR 163.63 Bn was subscribed at 5.51% • The latest banking system liquidity stands in surplus of ~INR 1569.22 Bn.
