• On Wednesday, the 10Y benchmark (6.48 GS 2035) opened steady at 6.98% as Brent crude oil prices remained largely amid no significant development in the West Asia war. • Over the day, yields stayed higher and elevated to 7% as Brent crude futures topped $115/barrel for the first time in nearly a month. The uncertainty about a US-Iran peace deal and reopening of the Strait of Hormuz resurfaced after US President Donald Trump posted a warning to Iran on the resumption of military strikes, pushing up crude. • The INR dropped sharply against the dollar and ended at a record closing low tracking the rise in crude oil. Indian rupee ended at 94.85/$ vs 94.50/$. • The 10Y point closed 2bps higher at 7.00% vs 6.98%. • The latest system liquidity stands in surplus of ~INR 2575.27 Bn.
