• On Thursday, the 10-year benchmark (6.94% GS 2036) opened 3 bps higher at 6.85%, following the RBI MPC minutes released post-market hours on Wednesday, which carried a hawkish undertone. • The overnight easing in 10Y UST yields by 6-7 bps to around 4.63% following the US Treasury Department’s announcement to double the size of its government debt repurchases helped limit the rise in IGB yields. • Brent crude touched $94/bbl intraday, a three-week high, amid fading hopes of U.S.-Iran talks and renewed economic pressure on Iran. Also the 10Y UST pared gains and hardened to 4.69 levels. • The 10Y point closed the day 5 bps higher at 6.87% vs 6.82. • Banking system liquidity remained in surplus at ~INR 3.7 Tn. RBI conducted multiple VRRR auctions to absorb excess liquidity.
