• On Wednesday, the 10-year benchmark government bond (6.48% GS 2035) opened steady at 6.66%. • T-Bill auction worth INR 340 Bn was fully subscribed and cut offs were, 3M-5.3176%, 6M-5. 5361% and 1Y-5. 5997%. • The 10Y point hardened as market participants placed short bets ahead of Weekly IGB auction. The 10Y point closed 2 bps up at 6.68% vs 6.66%. • On Friday RBI will offer IGBs worth INR 330 Bn, market participants now look forward to cut offs for further direction. • The latest banking system liquidity stands in surplus of ~INR 2621.49 Bn.
