• On Friday, the 10-year benchmark government bond (6.96% GS 2036) opened flat at 6.85% ahead of the weekly bond auction. • Over the day, 10Y bond yield hardened on profit-booking as uncertainty on the West Asia situation continued to dampen risk appetite. • The cut-off at the weekly IGB came in better than market expectations for short term IGBs, with 6.03% GS 2029 at 6.23% and 6.68% GS 2033 at 6.7373%. The RBI minutes for the June policy were broadly in line with the policy outcome of being vigilant and waiting for more clarity before monetary policy response. • Indian rupee ended steady 94.32/$ as market remained cautious about the US-Iran peace deal. • The 10Y point closed flat at 6.85%. The latest banking system liquidity stands in surplus of ~INR 191.63 Bn.
