• The 10-year benchmark government bond (6.48% GS 2035) opened 1bp higher at 6.91% due to uncertainty over the continuance of the ceasefire in the West Asia war. • Over the day, the 10Y point dropped on short-covering by traders and intraday fall in crude oil prices. • Meanwhile, the government switched six bonds worth INR 126.87 Bn, lower than the notified size of INR 300 Bn, in the first switch auction of FY27. • The rupee ended lower against the dollar as banks persistently bought dollars on behalf of importers and foreign portfolio investors. INR ended at 93.1275/$ vs Friday’s close of 92.9250/$. • The 10Y yield closed 1bp lower at 6.89% vs 6.90%. The latest banking system liquidity stayed in surplus of ~INR 4276.98 Bln.
