• On Friday, the 10-year benchmark government bond (6.48% GS 2035) opened steady at 6.67% as market participants awaited RBI OMO cut offs for further cues. • Over the day yields hardened to 6.69% tracking elevated Brent crude prices, amid ongoing tensions in the Middle East that raised inflationary concerns, with Brent crude hovering around the $100/barrell. • The INR touched all-time low of 92.48/$ amid rising crude prices and strong dollar. The DXY hovered around 100 levels. • RBI conducted OMO purchase for INR 500 Bn and cut off yields came higher than the expectations. • The latest banking system liquidity stands in surplus of ~INR 2485 Bn. The 10Y point closed 1 bp up at 6.68% vs 6.67%
