• On Wednesday, the 10Y benchmark (6.33 GS 2035) opened 1bp higher at 6.90% due to a rise in crude oil prices, which remained near the key level of $100/barrel tracking uncertainties around the second round of US-Iran peace talks. • Over the day, yields stayed higher on fears of escalation in the West Asia war. The likelihood of the ceasefire between the US and Iran ending and a return to a full-scale war kept market participants risk averse. • Indian rupee settled at an over three-week low of 93.80/$ vs previous close of 93.50/$ primarily owing to the uncertainty related to the US and Iran peace negotiations. • The 10Y point closed 3bps higher at 6.92% vs 6.89%. • The latest system liquidity stands in surplus of ~INR 3280.05 Bn.
