• On Wednesday, the 10-year benchmark government bond (6.94% GS 2036) opened 2bp higher at 6.77% tracking an overnight jump in US 10Y bond yield. • Over the day, the 10Y yield fell to 6.73% on hopes of Indian bonds' inclusion in Bloomberg's flagship Global Aggregate Index. However, market participants booked profits taking advantage of the rally. • The RBI offered 91-day T-bill at a cut-off rate of 5.2521%, 182-day T-bill at a 5.4702% and 364-day T-bill at 5.6632%. • Indian rupee ended lower at 95.25/$ on oil importers dollar demand vs 94.66/$ Tuesday’s close. • The 10Y point closed 1bp higher at 6.76% vs 6.75%. The latest banking system liquidity stands in surplus of ~INR 1125.77 Bn.
