• The 10-year benchmark government bond (6.48% GS 2035) opened flat at 6.89% amid uncertainty over the truce between US-Iran. • Over the day, 10Y yield dropped to 6.87% level on optimism about the extension of the ceasefire in the West Asia war. • The state-bond auction witnessed robust demand and provided support to the bonds. RBI offered 10Y Rajasthan at 7.64%, 11Y Telangana at 7.70%, 30Y Andhra Pradesh at 7.81%. • The intraday fall in INR weighed on bond prices. INR ended lower at 93.51/$ vs 93.13/$ on importers dollar demand amid looming uncertainty related to the peace talks between ?the US and Iran. • The 10Y point ended flat at 6.89% vs 6.89%. The latest banking system liquidity stands in surplus of ~INR 4066.75 Bn.
