• On Friday, the 10-year benchmark government bond (6.48% GS 2035) opened 2bps higher at 6.70% tracking a jump in crude oil prices and rising geopolitical tensions between the US and Iran. • Crude oil prices rose to a six-month high as Iran organised a collaborative naval drill with Russia, as reported by Iran's Fars news agency, shortly after it closed the Strait of Hormuz for several hours for military exercises. • Over the day, short covering continued ahead of the weekly gilt auction. The result of the INR 330 Bln gilt auction was largely in line with expectations. • Meanwhile, Indian rupee ended lower at 90.98/$ vs 90.67/$. The 10Y point closed 4bps higher at 6.72% vs 6.68%. • The latest banking system liquidity stands in surplus of ~INR 2446.76 Bn.
