• On Wednesday, the 10-year benchmark government bond (6.33% GS 2035) opened 1bp higher at 6.53% • Over the day, 10Y point hardened amid retracement after yesterday’s aggressive rally and profit-booking ahead of RBI MPC outcome. The weakness in INR also weighed on gilts. • Meanwhile, Indian rupee breached record low of 90.29/$ during intraday trades on importers dollar demand and absence of aggressive RBI intervention. • The 10Y point closed 2bp higher at 6.54% vs 6.52%. • The T-Bill auction conducted by RBI worth INR 190 Bn was fully subscribed and cut offs were, 3M – 5.3480%, 6M – 5.5282% and 1Y - 5.5450%.
