• The 10-year benchmark government bond (6.48% GS 2035) opened steady at 7.04% ahead of the weekly gilt auction. • Over the day, the 10Y point elevated on the lack of clarity on US-Iran war. The bonds remained sharply down as cut-off prices at INR 290 Bn auction came in lower than expected, especially with Brent crude oil prices and US Treasury yields rising intraday. • Meanwhile, Indian rupee appreciated to a 2-week 92.82/$ after RBI took new measures to curb speculative trade in the currency. INR ended at 93.10/$ compared to 94.83/$. • The traders await decisions by the Monetary Policy Committee next week for the RBI's commentary on India's growth and inflation outlook due to the war. • The 10Y yield closed 9bp higher at 7.13% vs 7.04%.
