• On Tuesday, the 10-year benchmark government bond (6.48% GS 2035) opened flat at 7.04% due to a lack of significant domestic cues. • Over the day, 10Y yield dropped on an easing in Brent crude oil prices intraday from over $100/barrel. • Meanwhile, the SDL auction cut-off yield was largely in line with market expectations. RBI offered 10Y Uttar Pradesh at 7.7801%, 10Y Chhattisgarh at 7.79%. • Indian rupee dropped after rising for three straight sessions as fresh hostilities in West Asia and dampened investors' risk appetite. INR closed at 95.68/$ vs 95.23/$. • The 10Y point ended 4bp lower at 6.99% vs 7.03%. The latest banking system liquidity stands in surplus of ~INR 672.85 Bn.
