• On Friday, the 10-year benchmark (6.94% GS 2036) opened 2 bps higher at 6.91% as some participants trimmed positions ahead of the weekly IGB auction, which included the 10y benchmark security. • The cut off for the weekly IGB auction were broadly on expected lines with 6.94% GS 2036 coming at 6.9136%. • Participants remained cautious ahead of Fed Chair Warsh’s speech at the Jackson Hole event post market hours and the domestic GDP data due on Monday. • The 10Y point closed the day 2 bps higher at 6.91% vs 6.89%. • Banking system liquidity remained in surplus at ~INR 3.75 Tn. RBI conducted 3 day VRRR auction for INR 3 Tn to absorb excess liquidity, accepting INR 1.52 Tn at 5.24%.
