• On Monday, the benchmark 10-year government bond (6.48% GS 2035) opened 2 bps higher at 7.00%, tracking a sharp rise in Brent crude oil prices above $105/bbl after the US rejected Iran’s proposal as “totally unacceptable.” • The development heightened concerns over renewed tensions in the Middle East following weeks of negotiations. • The INR remained under pressure amid elevated crude oil prices and continued FPI outflows, depreciating nearly 0.9% to 95.31/$, while the DXY hovered around the 98 level. • The 10Y IGB (6.48% GS 2035) closed 5 bps higher at 7.03% vs 6.98%. • The latest banking system liquidity stands in surplus of ~INR 2.22 Tn
