• On Monday, the 10-year benchmark government bond (6.48% GS 2035) opened 3bp higher at 6.96% tracking the rise in crude oil prices after US-Iran peace talks faltered. • Over the day, the 10Y point dropped on short-covering by traders amid intraday fall in crude oil prices. The appreciation in INR also supported the bond market. • The rupee ended slightly higher against the dollar, snapping its five-day losing streak, likely on exporters selling and likely RBI intervention. INR ended at 94.19/$ vs Friday’s close of 94.25/$. • The 10Y yield closed 1bp higher at 6.94% vs 6.93%. • The latest banking system liquidity stayed in surplus of ~INR 2915.05 Bln.
