• The 10-year benchmark government bond (6.48% GS 2035) opened 4bps higher at 6.74%. • The 10-year government bond weakened during the day, with the yield touching 6.78%, its highest since Jan 17, 2025, after the government's gross market borrowing was pegged at a record INR 17.2 Trln, higher than market expectations of around INR 16.5 Trln. • Meanwhile, Indian rupee ended sharply higher against the dollar, posting its biggest single-day gain in over six weeks, due to the RBI's aggressive intervention through dollar sales and exporters hedging. INR closed at 91.52/$ vs 91.98/$. • The focus is on tomorrow’s SDL auction, where 14 states are set to raise INR 365 Bln lower than the indicative borrowing calendar amount of INR 428 Bln, with ~67% being in the 10-year and above bucket. • The 10Y point closed 7bp higher at 6.77% vs 6.70%.
