• The 10-year benchmark government bond (6.48% GS 2035) opened 3 bp lower at 6.69% as crude oil prices tumbled following US Trump's remarks that the armed conflict in West Asia would end "very soon". • Over the day, 10Y yield eased by short covering by market participants amid stronger INR and weakness in crude oil prices. • Meanwhile, the SDL auction result came better than market expectations. RBI offered 10Y Tamil Nadu at 7.41%, 10Y Delhi at 7.45%, 10Y Madhya Pradesh at 7.45%. • Indian rupee ended higher against the dollar at 91.81/$ vs 92.33/$. • The 10Y point ended 5bps lower at 6.67% vs 6.72%. The latest banking system liquidity stands in surplus of ~INR 2191.06 Bn.
