• On Tuesday, the 10-year benchmark government bond (6.48% GS 2035) opened steady at 6.66% ahead of weekly SDL auction • SDL auction worth ~ INR 380 Bn was conducted and cut offs were better than expected. RBI offered Karnataka 10Y at 7.44%, Uttar Pradesh 15Y at 7.67% and Tamil Nadu 30Y at 7.66%. • The INR closed broadly unchanged at 90.68/$, with DXY hovering around 97 levels. • Yesterday the Trade data was released, and it indicated that the merchandise trade deficit surged to $34.68 bn in January, up from $25.04 bn in December. Meanwhile the India's unemployment rate climbed to 5% in January, up from 4.8% in December. • The latest banking system liquidity stands in surplus of ~$28.5 Bn (~INR 2592 Bn). The 10Y point closed flat at 6.66%.
