• On Monday, the benchmark 10Y bond (6.94% GS 2036) traded 2 bps higher at 7.14% in early trade, tracking the rise in global crude oil prices and elevated US Treasury yields, with the 10Y UST hovering around 5.20%. • Brent crude traded near $106/bbl after President Trump rejected Iran's peace proposal to end the conflict and reopen the Strait of Hormuz. • The 10Y IGB yield touched 7.18% ahead of the cut-offs for the 3rd tranche of OMO sales and amid heightened geopolitical uncertainty. • The cut-offs for the OMO auction came broadly in line with expectations. The 10Y point closed 6 bps higher at 7.18% vs 7.12%. • Banking system liquidity remained at surplus of around INR 4.39 Tn. RBI conducted overnight VRRR auction for INR 2 Tn to absorb excess liquidity, accepting INR 1.1 Tn at 5.24%.
