Yields end the day better • On Thursday, the 10-year benchmark government bond (6.33% GS 2035) opened 2bps lower at 6.49% tracking the fall in US Treasury yields. • Meanwhile, over the day 10Y bond yields hardened on profit-booking amid signs that a trade deal between US-India could reduce tariffs on Indian exports to 15-16%, trimming bets of RBI rate cut in December. • The 10Y point ended 4bps higher at 6.54% vs 6.50%. • RBI conducted overnight VRR for INR 500 Bn and received meagre subscription of INR 4.75 Bn at 5.51%. The latest banking system liquidity stands in deficit of ~INR 701.69 Bn.
