• On Tuesday, the 10-year benchmark government bond (6.94% GS 2036) opened steady at 6.75% amid uncertainty about US-Iran peace talks and lack of fresh cues. • Over the day, 10Y yield stayed lower as intraday Brent crude oil prices fell to around $70-$72/barrel. However, later in the day few market participants booked profits taking advantage of the rally. • The cut-off on state bonds came broadly in line with market expectations. RBI offered 13Y Andhra Pradesh at 7.56%, 13Y Punjab at 7.62% and 13Y Telangana at 7.53%. • Indian rupee ended lower at 94.66/$ vs 94.54/$ on dollar buying by importers. • The 10Y point ended flat at 6.75%. The latest banking system liquidity stands in deficit of ~INR 130.77 Bn.
