• On Friday, the 10-year benchmark government bond (6.94% GS 2036) opened 2 bps higher at 6.86%, tracking the rise in the 10Y UST yield to 4.70% following stronger than expected US jobs data and Brent crude breaching the $100/bbl mark. • Crude prices surged amid escalating Middle East tensions, with attacks on ships in the Strait of Hormuz and the Red Sea, alongside US President Donald Trump's warning of a massive response to further Iranian attacks. • Market participants maintained caution ahead of weekly IGB auction. Over the day yields eased tracking intraday decline in crude prices to 96.5 levels. • The cut offs at weekly IGB auction came broadly on expected lines, with New GS 2041 coming at 7.06% and 7.43% GS 2076 at 7.6212%. The 10Y point closed 1 bp lower at 6.83% vs 6.84%.. • The latest banking system liquidity stayed in surplus of ~INR 571 Bn.
