• On Monday, the 10-year benchmark (6.94% GS 2036) opened steady at 6.85%. • Brent crude remained elevated, trading near $92/bbl, ahead of the announcement of US economic sanctions on Iran later in the day. The US had warned of harsh economic sanctions on Iran, increasing uncertainty over prospects for an end to the US-Iran conflict. • Over the day, the 10Y IGB traded in the 6.85–6.87% range, with elevated 10Y UST yields above 4.70% weighing on sentiment. • The 10Y point closed the day 2 bps higher at 6.87% vs 6.85% • Banking system liquidity remained in surplus at ~INR 3.4 Tn. RBI conducted multiple VRRR auctions to absorb excess liquidity.
