• On Thursday, the 10-year benchmark (6.94% GS 2036) opened steady at 6.85%. Brent crude continued to trade lower, near $87/bbl, amid hopes that Iran-Qatar talks could reopen the Strait of Hormuz and ease concerns over oil supply disruptions from the Middle East conflict. • The 10Y IGB yield rose to 6.88% during the day, likely due to short bets placed by some participants ahead of Friday’s weekly IGB auction, which includes the 10Y benchmark. • The 10Y UST traded near 4.66% ahead of Fed Chair Warsh’s speech at Jackson Hole Event on Friday, which participants await for further guidance. • Higher than expected T-Bill cut-off yields weighed on market sentiment, with 3M T-Bill coming at 5.2640%, 6M at 5.6181% and 1Y at 5.7968%. The 10Y point closed the day 4 bps higher at 6.89% vs 6.85%. • Banking system liquidity remained in surplus at ~INR 3.75 Tn. RBI conducted overnight VRRR auction for INR 2 Tn to absorb excess liquidity, accepting INR 1.4 Tn at 5.24%.
