Yields end the day better • On Wednesday, the 10-year benchmark government bond (6.33% GS 2035) opened 1 bp lower at 6.58%. • Over the day, 10Y point hardened tracking the rise in OIS as market participants amid profit-booking ahead of tomorrow’s Open Market Operations (OMO) auction. • Meanwhile, Indian rupee recovered after soaring against the dollar on aggressive RBI intervention. Indian rupee ended at 90.38/$. • The 10Y point closed 1bp higher at 6.60% vs 6.59%. • The latest banking system liquidity fell to deficit of ~INR 607.8781 Bn due to advance tax and GST related outflows. RBI conducted VRR auction of RBI conducted overnight VRR for INR 750 Bn and partially subscribed at 5.26%.
