• On Monday, the 10-year benchmark government bond (6.48% GS 2035) opened 5bp lower at 7.04% as Brent crude oil prices fell overnight to trade below the psychologically crucial level of $100/barrel. • Over the day, the 10Y point stayed range bound as some traders booked profits at levels seen as attractive, while others placed short positions. • Meanwhile, Indian rupee rose sharply against the dollar to an over 2-week high tracking the fall in crude oil prices. INR ended at 95.23/$ vs Friday’s closing of 95.69/$. • The 10Y yield closed 6bp lower at 7.03% vs 7.09%. • The latest banking system liquidity stayed in surplus of ~INR 552.86 Bln.
