• The 10-year benchmark government bond (6.48% GS 2035) opened 2bp higher at 7.06% tracking the rise in crude oil prices on no signs of de-escalation in the ongoing West Asia war. • Over the day, 10Y yield dropped to 7.01% level on short covering by traders. The state-bond auction witnessed robust demand, also provided support to the bonds. RBI offered 10Y Himachal Pradesh at 7.81%, 10Y Punjab at 7.91%, 13Y Maharashtra at 7.91%. • INR ended lower at 93/$ vs 93.06/$ on importers dollar demand on behalf of oil marketing companies. • The 10Y point ended flat at 7.05% vs 7.05% while traders stayed cautious about tomorrow’s RBI MPC policy outcome. • The latest banking system liquidity stands in surplus of ~INR 3953.31 Bn.
