• 10-year benchmark government bond (6.48% GS 2035) opened flat at 6.70% ahead of the OMO auction. • Over the day, the 10Y point eased further amid comfortable liquidity in the banking system. The optimism continued post better than expected OMO auction cut-off. • The market participants remained focused on the RBI MPC policy tomorrow with no expectations of a rate cut but will keep an eye on RBI's forecasts for GDP and inflation, and announcements of liquidity measures. • Indian rupee ended higher at 90.35/$ vs 90.44/$ supported by foreign portfolio inflows and exporters' dollar sales. • The 10Y point ended 5bp lower at 6.65% vs 6.70%. The latest banking system liquidity stayed in surplus of ~INR 1959.88 Bn.
