• On Thursday, the 10-year benchmark government bond (6.94% GS 2036) opened 2 bps higher at 6.82%, tracking overnight surge in 10Y UST to 4.66% and Brent crude which climbed to a six week high at $96/bbl. • During the day brent crude oil prices surged to $98/bbl levels amid ongoing conflict in Middle east and reports of attacks on Oil tankers in Red sea by Houthi rebels of Yemen, further escalating geopolitical tensions. • The 10Y point closed 4 bps up at 6.84% vs 6.80%, as higher crude prices fuelled inflation concerns. • The latest banking system liquidity stayed in surplus of ~INR 28.8 Bn. • The INR closed at 96.57/$ on likely RBI intervention, with DXY hovering around 101.2 levels.
