• The 10-year benchmark government bond (6.48% GS 2035) opened 1bp higher at 6.71%.. • Over the day, short selling continued in the bond market, however the 10Y point dropped after a better-than-expected OMO auction cut-off. • Meanwhile, Indian rupee breached fresh record low of 92/$ on behalf of dollar buying by importers and tracking the bounce in dollar index after US Treasury Secretary Scott Bessent said the US has a strong-dollar policy. INR closed at 91.95/$ vs 91.78/$. • The focus has shifted to tomorrow’s weekly bond auction where RBI will offer 6.48%, 2035 for INR 320 Bn. The 10Y point ended flat at 6.70%. • The latest banking system liquidity stayed in surplus of ~INR 677.07 Bn.
