• On Monday, the 10-year benchmark (6.94% GS 2036) opened 1 bp higher at 6.97%, tracking elevated Brent crude prices near $97/bbl. • Brent crude oil prices rose as escalating US-Iran strikes increased concerns over prolonged supply disruptions from the Middle East. • Banking system liquidity remained at a record surplus of around INR 11.6 Tn, supported by robust FCNR(B) inflows. RBI conducted multiple VRRR auctions to absorb excess liquidity. RBI’s 30 day VRRR of INR 7 Tn saw subdued demand, with only INR 2.6 Tn subscribed at 5.24%. • Over the day, the 10Y IGB traded in the 6.95%-6.97% range, with some buying interest emerging at elevated levels, though gains were capped by elevated crude oil prices. • The 10Y point closed the day flat at 6.96%.
