Yields end the day higher • On Monday, the 10-year benchmark government bond (6.33% GS 2035) opened steady at 6.53%. • The INR depreciated by ~43 paise and closed at 88.26/$ likely due to strengthening in crude oil prices. The Brent crude has risen ~ 5% over the week, after the US announced sanctions on Russia's two largest oil companies. • RBI conducted two overnight VRR auctions, one for INR 1000 Bn and another for INR 500 Bn. The 1st auction witnessed the robust demand and was fully subscribed at 5.51%, while the 2nd saw muted demand with only ~INR 17.8 Bn was subscribed at 5.51%. • The latest banking system liquidity stands in surplus of ~INR 275.5 Bn. The 10Y point closed 2 bps up at 6.55%.
