• The 10-year benchmark government bond (6.48% GS 2035) opened 9bps at 6.96% after US and Iran agreed to a two-week ceasefire. • Over the day, the 10Y point dropped as bets of a rate hike in June have been pushed to late 2026 after the Gov Malhotra commented that low interest rates were possible in the short and medium-term. Also, the central bank's inflation forecasts for FY27 did not indicate chances of a rate hike in 2026. The RBI MPC kept the repo rate unchanged at 5.25% unanimously, while maintaining a 'neutral' stance. • Meanwhile, the rupee ended at a three-week high against the dollar as crude oil prices slumped and domestic equities surged after the US and Iran agreed to a two-week ceasefire. Indian rupee ended at 92.58/$ vs 93.00/$. • The 10Y point closed 15bp lower at 6.90% vs 7.05 %. • The latest banking system liquidity stayed in surplus of ~INR 4108.02 Bn.
