• On Wednesday, the 10-year benchmark government bond (6.48% GS 2035) opened 4 bp higher at 6.72% tracking the rise in crude oil prices and US Treasury yields. • Over the day, 10Y point dropped to 6.70% level as Brent crude oil pared gains on reports that Iran reached out indirectly to the US Central Intelligence Agency seeking to end the conflict. Also, there were speculations of the RBI coming up with an OMO purchase auction announcement post market hours. • Meanwhile, the rupee breached record low of 92.30 against the dollar as importers and oil marketing companies bought the greenback after risk sentiment was hit due the ongoing hostilities in West Asia. INR closed at 92.15/$ vs 91.47/$. • The 10Y point closed 1bp lower at 6.67% vs 6.68%. • The T-Bill auction conducted by RBI worth ~$3.68 Bn (INR 340 Bn) was fully subscribed and cut offs were, 3M – 5.3126%, 6M – 5.5350% and 1Y - 5.6000%. The latest banking system liquidity stayed in surplus of ~INR 2719.41 Bn.
