• On Friday, the 10-year benchmark government bond (6.94% GS 2036) opened 1 bp lower at 6.74%, tracking overnight decline in 10Y UST and brent crude oil prices on a hope of a peace deal between the US and Iran. • The cut offs for weekly IGB auction came slightly better than expectations, with 6.36% GS 2031 coming at 6.4218% and 7.71% GS 2066 at 7.4543%. • 10Y point closed 4 bps lower at 6.71% vs 6.75%. • Market participants now await the release of domestic CPI data on Monday, with inflation expected to come in at 4.3%–4.4%. • The latest banking system liquidity stayed in surplus of ~$11.4 Bn (~INR 1.1 Tn). The INR closed at 95.32/$, with DXY hovering around 100.9 levels.
