• On Wednesday, the 10-year benchmark government bond (6.94% GS 2036) opened 3 bps higher at 6.82%, tracking overnight surge in Brent crude oil prices. • Brent crude touched $92/bbl overnight, amid escalating tensions in the Middle East and a lack of progress in the US-Iran peace negotiations. • 10Y IGB yields traded in the range of 6.80%-6.82% during the day, with some buying interest emerging as levels appeared attractive, however crude oil prices near $95/bbl continued to keep yields elevated amid inflation concerns. • The latest banking system liquidity stayed in surplus of ~INR 92.8 Bn. • The 10Y point closed 1 bp up at 6.80% vs 6.79%.
