• On Monday, the 10Y benchmark (6.94% GS 2036) opened steady at 7.06%, ahead of the second tranche of the OMO sales auction. The cut-offs for the OMO auction came broadly in line with expectations. • The 10Y point traded in the range of 7.05%-7.06% and eased towards 7.05%, tracking the intraday decline in crude oil to around $100.5/bbl and the 10Y UST to 4.95%. • Brent crude eased intraday towards $100.5/bbl amid hopes of US-Iran diplomatic engagement and expectations of a recovery in Saudi oil shipments. • The INR closed at 95.80/$ with DXY hovering around 100.2 levels. The 10Y point closed the day 2 bps lower at 7.05% vs 7.07%. • Banking system liquidity remained at surplus of around INR 6.04 Tn. RBI conducted overnight VRRR auction for INR 1 Tn to absorb excess liquidity, accepting INR 0.75 Tn at 5.24%.
