• On Tuesday, the 10-year benchmark government bond (6.48% GS 2035) opened 2bps lower at 6.59% amid speculation of on-screen purchases by the RBI. • Over the day, 10Y point hardened to 6.64% level on some profit-booking after Bloomberg Index Services said they would delay the inclusion of India's fully accessible route bonds in its flagship Global Aggregate Index. • Meanwhile, the SDL auction result came broadly in line with market expectations. RBI offered 10Y Tamil Nadu at 7.50%, 10Y Chhattisgarh at 7.54%. • However, the 10Y point ended 2bps higher at 6.63% vs 6.61%. • The latest banking system liquidity stands in surplus of ~INR 164.11 Bn.
