• On Tuesday, the 10-year benchmark government bond (6.48% GS 2035) opened steady at 6.71%. • Over the day, 10Y yield rose as traders kept waiting for the result of the state bond auction and tracking intraday movement of Brent crude oil prices. • Meanwhile, the SDL auction result came better than market expectations. RBI offered 10Y Rajasthan at 7.49%, 10Y Sikkim at 7.56%, 12Y Tamil Nadu at 7.57%. • Indian rupee ended higher against the dollar at 92.37/$ vs 92.42/$ on active intervention by the RBI. • The 10Y point ended 1bp higher at 6.72% vs 6.71%. The latest banking system liquidity stands in surplus of ~INR 754.84 Bn.
