• On Tuesday, the 10-year benchmark government bond (6.94% GS 2036) opened flat as traders assess the sustainability of the peace deal signed between the US and Iran. • Over the day, 10Y yield stayed weaker as Brent crude oil fell to an over-three-month low of $80.89/barrel as the US and Iran announced they had agreed to a memorandum of understanding to end the war in West Asia. • Meanwhile, the SDL auction cut-off yield was broadly on expected lines. RBI offered 10Y Assam at 7.66%, 11Y Telangana at 7.6389%. • Indian rupee rose sharply against the dollar for the third consecutive day as crude oil prices fell and optimism over the peace deal between the US and Iran. INR ended 94.56/$ vs 94.71/$. • The 10Y point ended flat at 6.87%. The latest banking system liquidity stands in surplus of ~INR 1511.31 Bn.
