• On Friday, the 10-year benchmark government bond (6.94% GS 2036) opened 1 bp lower at 6.80% tracking decline in 10Y UST to 4.65% levels following softer Core PCE data and weaker than expected Q2 US GDP growth at 1.5%. • IGB yields remained steady as participants stayed cautious ahead of the weekly IGB auction. The cut offs at weekly IGB auction came broadly on expected lines, with 6.94% GS 2036 coming at 6.8117%. • The 10Y point closed 2 bps higher at 6.83% vs 6.81%, as some participants trimmed positions ahead of the weekend amid the ongoing US-Iran conflict. • Post market hours, reports indicated that Bloomberg deferred the inclusion of Indian government bonds in its flagship Global Aggregate Index, contrary to market expectations. • The latest banking system liquidity stayed in surplus of ~INR 1.3 Tn.
