Yields end the day lower • On Monday, the 10-year benchmark government bond (6.33% GS 2035) opened 2 bps lower at 6.55% tracking the decline in US Treasury yields. Sentiment was also supported by data from the RBI’s weekly bulletin, which showed that the central bank purchased INR 148.10 Bn worth of government securities in the week ended November 14. • INR appreciated and closed at 89.23/$, after likely RBI intervention. • Over the week, Brent crude prices have eased by about 3% and are trading near $61.5 per barrel, amid Washington’s renewed push for a Russia-Ukraine peace agreement. • While speaking in an interview today, RBI Governor Sanjay Malhotra said that recent macro-economic indicators support the scope for a rate cut, raising expectations that the central bank’s MPC may consider easing policy at its December meeting. The 10Y point ended 5 bps lower at 6.52% vs 6.57%. • The latest banking system liquidity stands in surplus of ~INR 1505.8 Bn.
