• On Friday, the 10-year benchmark (6.94% GS 2036) opened 1 bp higher at 6.88% ahead of the weekly IGB auction, as participants remained cautious. • The 10Y benchmark traded in the 6.86-6.88% range as negative sentiment persisted amid the hawkish RBI MPC minutes, elevated Brent near $93/bbl and 10Y UST yields around 4.70%. • The cut offs for the weekly IGB auction came broadly on expected lines with 7.06% GS 2041 coming at 7.0668% and 7.43% GS 2076 at 7.5674%. • Yields eased sharply towards the end of the session after reports that Iran’s President favoured an end to the war in West Asia. The 10Y point closed the day 2 bps lower at 6.85% vs 6.87% • Banking system liquidity remained in surplus at ~INR 3.5 Tn. RBI conducted 3 day VRRR auction for INR 1.5 Tn to absorb excess liquidity, accepting INR 0.95 Tn at 5.24%.
