Yields end the day lower • On Thursday, the 10-year benchmark government bond (6.33% GS 2035) opened 2bp lower at 6.64%.Over the day, value-buying was witnessed tracking lower US Treasury bond yields after the US Fed Powell sounded less hawkish in the press conference amid a cut rate of 25bps. • The first OMO auction conducted by RBI worth INR 500Bn was fully subscribed and the cut-off came better than expected, supporting the uptrend in prices. • However, market participants booked profits after INR hit fresh record low of INR 90.48/$. • Meanwhile, the central bank will offer 6.68% GS 2040 for INR 160Bn and 6.90% GS 2065 for INR 120Bn at the weekly auction tomorrow. • The latest banking system liquidity stands in surplus of ~INR 1660.51 Bn. The 10Y point ended 5bps lower at 6.61% vs 6.66%.
