• The 10-year benchmark government bond (6.48% GS 2035) opened 3bps lower at 6.90% tracking a fall in Brent crude oil prices on possibility of another round of peace talks between the US and Iran in the next two days. • However, the 10Y point surged after the India's wholesale inflation for March came higher than expected, reflecting the impact of oil supply disruptions due to the war in West Asia. WPI inflation for March was 3.88%, higher than an expectation of 3.60% and 2.13% in February. • The optimism came back and 10Y yield fell after The Associated Press reported that the US and Iran had agreed in principle to extend the two-week ceasefire that ends Apr 22. • Meanwhile, the rupee ended flat at 93.37/$. • The 10Y point closed 5bp lower at 6.89% vs 6.93%. The latest banking system liquidity stayed in surplus of ~INR 5134 Bn.
