Yields end the day better • The 10-year benchmark government bond (6.33% GS 2035) opened steady at 6.53% on Monday. • Over the day, IGB 10Y bond yield surged to 6.56% on profit-booking ahead of tomorrow’s SDL auction where the states would raise less than indicated in the calendar. • The SDL auction is due tomorrow where 7 states will borrow 136Bn which is lower than the indicated amount of 194.50 Bn. • Market participants will also stay focused on RBI’s meeting with primary dealers and bankers tomorrow on current bond market conditions amid tightening liquidity in banking system. • However, yield eased on value-buying and 10Y point closed at 6.53% vs 6.53%.
