• On Friday, the benchmark 10Y bond (6.94% GS 2036) traded near 7.39% levels in early trades as participants-maintained caution ahead of the Weekly IGB auction. • Brent crude remained above $105/bbl amid persistent Middle East supply disruption risks, particularly around the Strait of Hormuz. • The cut offs at the weekly IGB auction were broadly on expected lines, with 6.94% GS 2036 coming at 7.3955%. • 10Y point eased to 7.35% levels as some participants covered short bets post the IGB auction. 10Y point closed the day 1 bp lower at 7.38% vs 7.39%. • Banking system liquidity remained in surplus at ~INR 2.4 Tn. INR closed at 94.96/$ with DXY hovering around 101.6 levels.
