• On Thursday, the 10-year benchmark government bond (6.94% GS 2036) opened 1bp higher at 6.81% tracking the overnight rise in US Treasury yields after the FOMC delivered a hawkish hold. • The Fed kept rates unchanged at 3.50%–3.75% in a 9–3 vote, with three members favouring a 25bps hike, while the absence of forward guidance pushed the 10Y USTs yield to around 4.67%. • The 10Y IGB yield touched an intraday high of 6.83% before easing, as buying interest emerged from some participants at higher yield levels. Participants remained cautious ahead of Tomorrow's IGB auction and next week's RBI MPC meeting. • The 10Y point closed 1 bp higher at 6.81% vs 6.80%. • The latest banking system liquidity stayed in surplus of ~INR 1.16 Tn.
