Yields end the day flat • The 10-year benchmark government bond (6.33% GS 2035) opened 1bp lower at 6.52%. • Over the day, the 10Y yield dropped 6.51% on speculations that RBI intervened in the secondary market through on-screen OMO purchases. However, the 10Y point hardened to 6.53% as market participants continued to book profits ahead of the meeting between the RBI and banks and PDs to discuss the liquidity conditions in the bond market be held today and on Thursday. • Meanwhile, SDL auction witnessed firm demand for bonds maturing in the 10-11 year segment. RBI offered 10Y Tamil Nadu at 7.14% while SGS2036 Maharashtra re-issue of 7.20% was offered at 7.19%. Meanwhile, 30Y Tamil Nadu cut-off was 7.46%. • Indian rupee ended stronger at 88.65/$, on likely RBI intervention in spot market. • The 10Y point closed flat at 6.53%
