• On Wednesday, the 10-year benchmark government bond (6.48% GS 2035) opened 1bp lower at 6.98% due to lack of significant cues. • Over the day, 10Y yield see-sawed rising to 7% on profit-booking by some traders, and then falling to 6.97% tracking Brent crude oil prices. Also, hopes of a peace agreement between the US and Iran supported the bond market. • T-Bill auction worth ~$2.38 Bn (INR 240 Bn) was fully subscribed and cut offs were, 3M – 5.5611%, 6M - 5.7349% and 1Y – 6.0273%. • Indian rupee ended steady at 95.69/$, while the 10Y point closed flat at 6.99%. • The 10Y point ended 4bp lower at 6.99% vs 7.03%. The latest banking system liquidity stands in surplus of ~INR 544.65 Bn.
