• The 10-year benchmark government bond (6.48% GS 2035) opened 1bp higher at 6.69% following a rise in oil prices past the $100/barrel mark. • Over the day, the 10Y point elevated to 6.72% tracking the rise in OIS rates and crude oil prices. However, some short covering was witnessed on hopes that RBI may buy bonds in the secondary market. • INR ended at 92.42/$ on likely RBI intervention compared to Friday’s close of 92.46/$. • Meanwhile, the 10Y point closed 3bp higher at 6.71% vs 6.68%. • The latest banking system liquidity stands in surplus of ~INR 2082.18 Bn.
