• On Tuesday, the 10-year benchmark government bond (6.48% GS 2035) opened 3 bps higher at 7.05% due to a rise in Brent crude oil prices and US Treasury yields. • In weekly SDL auction 5 states raised INR 186 Bn, the cut offs were broadly on expected lines. 10Y TN at 7.73%, 15Y TN at 7.80% & 25Y AP at 7.88%. • The INR remained under pressure during the day and touched all-time low of 95.43/$ amid geopolitical tensions and rising Brent crude prices. Brent crude continued to trade above the $110 per barrel mark. INR closed at 95.28/$, with DXY hovering around 98.4 levels. • The 10-year IGB yield eased following reports that the Reserve Bank of India is considering the sale of foreign currency bonds through state-owned banks. The 10Y point closed flat at 7.02%. • The latest banking system liquidity stands in surplus of ~INR 2.56 Tn.
