• On Friday, the 10-year benchmark government bond (6.48% GS 2035) opened flat at 6.99% amid no clarity over the end of the US-Iran war. • Over the day, 10Y yield see-sawed tracking a sharp fall in prices of Brent crude oil however traders placed short bets tracking the intraday movement in Brent crude. • The weekly auction cut-off worth INR 280 Bln came in line with market expectations, 6.68% GS 2040 at 7.3439% and 7.43% GS 2076. • INR posted its biggest single-day gain in nearly 2 months amid drop in crude oil prices and likely RBI intervention. INR ended at 3-week high of 95/$ vs 95.69/$. • The 10Y point closed flat at 7.00%. The latest banking system liquidity stands in surplus of ~INR 674.82 Bn.
