• On Tuesday, the benchmark 10-year government bond (6.48% GS 2035) opened 2 bps higher at 7.05%, tracking the rise in the 10-year UST, which was trading at 4.43%, amid elevated Brent crude oil prices. • Market sentiment remained cautious as Brent crude prices stayed elevated at around $107/bbl. • The INR continued to remain under pressure and touched all-time low of 95.74/$ and closed at 95.63/$, while the DXY hovered around the 98.20 level. • Domestic CPI inflation print was released, and it came at 3.48% vs the market expectations of 3.80%. The 10Y IGB (6.48% GS 2035) closed 2 bps higher at 7.05% vs 7.03%. • The latest banking system liquidity stands in surplus of ~INR 1.94 Tn.
