• On Tuesday, the 10-year benchmark government bond (6.94% GS 2036) opened steady at 6.68% in absence of fresh cues. • Participants remained hopeful about India's inclusion in Bloomberg's Global Aggregate Index by mid-July. • Over the day 10y point hardened to 6.71% levels as some participants booked profits. The cut offs for weekly SDL auction were broadly on expected lines, with 9Y BR coming at 7.42%, 16Y UP at 7.59% and 30Y MP at 7.65%. • The latest banking system liquidity stayed in surplus of ~INR 1.1 Tn. • 10Y point closed 1 bp up at 6.70% vs 6.69%.
