• On Wednesday, the 10-year benchmark government bond (6.48% GS 2035) opened 1bp higher at 7.02% as Brent crude oil prices rose past the key level of $95/barrel but remained below the psychologically crucial level of $100/barrel. • Over the day, the 10Y point briefly recovered after news report that the government plans to cut taxes paid by foreign investors and remove limitations on ownership of some bonds to attract foreign bond buyers. • RBI rejected bids for 182-day and 364-day T-bills at the auction. The RBI accepted bids for only the 91-day T-bill, at a cut-off rate of 5.56%. • Indian rupee ended at 2-week low of 95.70/$ vs 95.27/$ as Brent crude oil prices rose amid escalating tensions between the US and Iran. • The 10Y point closed flat at 7.02%. The latest banking system liquidity stands in surplus of ~INR 1123.36 Bn.
