• On Monday, the 10-year benchmark government bond (6.94% GS 2036) opened flat at 6.78% as traders await for some clarity about the peace deal. • Over the day, the 10Y yield dropped to 6.75% tracking the movement in Brent crude oil prices due to no major escalation in the West Asia war. However, the rise in bond prices was capped as some traders booked profits on their holdings at levels seen as attractive. • INR ended at 94.54/$ vs 94.40/$ previous close as banks persistently bought dollars on behalf of importers, fearing further weakness of the Indian unit. • The 10Y point closed 3bps lower at 6.75% vs 6.78%. • The latest banking system liquidity stands in deficit of ~INR 415.62 Bn.
