• On Tuesday, the benchmark 10Y bond (6.94% GS 2036) opened 2 bps lower at 7.37%, tracking decline in 10Y UST to 5.20 levels. 10Y IGB touched 7.34% ahead of OMO sales and weekly SDL auction. • INR appreciated, post a series of measures announced by the Reserve Bank of India (RBI) to contain volatility in the foreign-exchange market and ease pressure on the domestic currency. • The cut-offs at the weekly SDL auction were broadly on expected lines with 9Y GJ coming at 7.96%, 20Y TN at 8.14% and 25Y TN at 8.21%. • INR closed the day at 95.30/$ with DXY hovering around 102.2. 10Y point closed the day 2 bps lower at 7.37% vs 7.39%. • Banking system liquidity remained in surplus at ~INR 3.3 Tn. RBI conducted overnight VRRR auction for INR 1.5 Tn to absorb excess liquidity accepting INR 0.7 Tn at 5.49 %.
