Yields closed higher today • On Friday, the 10-year benchmark government bond (6.33% GS 2035) opened steady at 6.52% ahead of weekly IGB auction and the GDP data scheduled for release later in the day. • The IGB auction cut offs were broadly on expected lines and RBI offered 5.91% GS 2028 at 5.7808%, 6.28% GS 2032 at 6.4343%, 7.24% GS 2055 at 7.2875% and 6.98% GOI SGrB 2054 at 7.2094% • India’s GDP growth accelerated to 8.2% in the second quarter ended September, significantly surpassing market expectations of 7.2%. Following the stronger than anticipated print 10Y IGB yields hardened as the hopes of RBI rate cut in December policy diminished. • The 10Y point closed 4bps up at 6.55% vs 6.51%. • The latest banking system liquidity stands in surplus of ~INR 1268.29 Bn).
