• On Thursday, the benchmark 10Y bond (6.94% GS 2036) opened steady at 7.24% and touched 7.25% in early trades tracking brent crude near $101 and 10Y UST at 5.31%. • Over the day 10Y IGB hardened to 7.29 levels tracking intraday rise in Brent crude to $105.3/bbl levels and 10Y UST near 5.35%. • Brent crude rose above $105/bbl amid escalating tensions in the Middle East, raising concerns over potential supply disruptions. • INR closed the day at 96.78/$ with DXY hovering around 102.3.10Y point closed the day 5 bps higher at 7.29% vs 7.24%. • Banking system liquidity remained in surplus at ~INR 4.23 Tn. RBI conducted multiple VRRR auctions to absorb excess liquidity.
