Yields end the day lower • The 10-year benchmark government bond (6.33% GS 2035) opened 1 bp lower at 6.50% on Wednesday. • Over the day, the speculation of continued RBI buying weighed on the yields. However, some profit-booking was witnessed post India’s CPI inflation data. The headline inflation came at 0.25% in October from 1.44% in September on the back of the impact of GST rate cut on prices along with subdued food inflation and favourable base effect. • The latest banking system liquidity stands in surplus of ~INR 2110.58 Bn. • The 10Y point ended 1bp lower at 6.50% vs 6.51%. • Meanwhile, T-Bill auction worth INR 120 Bn was fully subscribed and cut offs were, 3M – 5.4312%, 6M – 5.5717% and 1Y - 5.5699%.
