• On Wednesday, the 10-year benchmark government bond (6.48% GS 2035) opened steady at 6.72% amid lack of significant cues. • T-Bill auction worth INR 340 Bn was fully subscribed and cut offs were, 3M - 5.32%, 6M - 5.5581% and 1Y - 5.61% • The 10Y IGB yield eased, tracking the decline in U.S. Treasury yields. The 10Y UST hovered around the 4.14% level following weaker than expected U.S. retail sales data and ahead of the U.S. Non-Farm Payrolls (NFP) release, scheduled post market hours. The 10Y point closed 1 bp lower at 6.71% vs 6.72%. • Domestic CPI inflation data is scheduled for release tomorrow. As per the Reuters poll, headline CPI is expected to edge up to 2.4%. • The latest banking system liquidity stands in surplus of ~INR 3367 Bn.
