• The 10-year benchmark government bond (6.48% GS 2035) opened 2bps higher at 6.97% as Brent crude prices continued to rise and was above $105/barrel as the stalemate in West Asia between the US and Iran continued. • Over the day, short bets continued ahead of the weekly bond auction. However, post the result of the weekly bond auction covered their short sales after the auction and ahead of the weekend. • The weekly auction cut-off worth INR 320 Bln came mixed with 6.03% GS 2029 at 6.3065%, 6.03% GS 2029 at 6.9501%, 7.24% GS 2055 at 7.5628% and New GOI SGrB 2056 at 7.50%. • The 10Y point closed 2 bps lower at 6.93% vs 6.95%. • The latest banking system liquidity stands in surplus of ~INR 2985.16 Bn.
