• On Monday, the 10-year benchmark government bond (6.48% GS 2035) opened steady at 7.01%. • During the day, yields eased to around 6.99%, tracking the intraday decline in Brent crude prices, which had fallen below $107 per barrel. However, crude oil prices rose later after reports of Iran’s attack on US ships heightened concerns of renewed conflict in the Middle East amid ongoing ceasefires. Brent crude for July delivery subsequently surged, briefly rising to over $113 per barrel from intraday lows below $107 per barrel. • The 10Y point closed 1 bp up at 7.02% vs 7.01%. • INR closed weaker at 95.08/$, with DXY hovering around 98.30 levels. • The latest banking system liquidity stands in surplus of ~INR 2026 Bn.
