• On Friday, the benchmark 10Y bond (6.94% GS 2036) traded near 7.35% levels in early trades tracking easing in 10Y UST to 5.07% levels. • 10Y IGB traded in the range of 7.35%-7.37% ahead of the weekly SDL auction. Over the day brent continue to trade above $105/bbl levels. • The cut offs at the weekly SDL auction were broadly in line with the expectations, with RJ 10Y coming at 8.04%, MH 15Y at 8.14% and MH 28Y at 8.18%. • INR closed at 94.92/$ with DXY hovering around 101.8 levels. 10Y point closed the day 1 bp higher at 7.39% vs 7.38%. • Banking system liquidity remained in surplus at ~INR 1.85 Tn. RBI conducted a 7-day VRR auction worth INR 1 Tn to inject liquidity, with the auction fully subscribed at 5.51%.
