• On Friday, the 10-year benchmark (6.94% GS 2036) opened steady at 6.96% as participants-maintained caution ahead of the weekly IGB auction. • Brent continues to trade above $95 as the conflict in the Middle East seems to last longer amid renewed escalation in the region. • The 10Y UST eased to around 4.76% as Fed Governor Waller indicated he was leaning towards holding rates steady at the September meeting, barring any surprises in upcoming inflation data. • The cut offs for the weekly IGB auction came broadly on expected lines with New 5Y G Sec coming at 6.53% and 7.71% GS 2066 at 7.6618%. The 10y point closed the day flat at 6.96%. • Banking system liquidity remained at a record surplus of around INR 10.3 tn, supported by robust FCNR(B) inflows. RBI conducted multiple VRRR auctions to absorb excess liquidity.
