Yields end the day lower • On Friday, the 10-year benchmark government bond (6.33% GS 2035) opened steady at 6.54% • Over the day, profit-booking extended even today taking the 10Y bond yield to 6.56%; however few traders also covered their short positions after the heavy sell-off witnessed yesterday. • The market participants will stay focused on US CPI data due later today for cues on Federal Reserve’s rate action in the upcoming policy meeting. • The 10Y point closed 1 bp lower at 6.53% vs 6.54%. • RBI conducted 3-day VRR for INR 1250 Bn and received meagre subscription of INR 307.50 Bn at 5.51%. The latest banking system liquidity stands in deficit of ~INR 26.45 Bn.
