• On Friday, the 10-year benchmark government bond (6.48% GS 2035) opened 2 bps higher at 6.91% tracking rise in crude oil prices. • Over the day, yields hardened to 6.93% as some participants placed short bets ahead of the weekly IGB auction. • However, yields later eased, tracking the decline in Brent crude prices, which hovered around the $95/barrel mark amid growing optimism over a potential US–Iran peace deal following comments from President Trump suggesting the conflict could end soon. • The 10Y point closed 1 bp up at 6.90% vs 6.89%. • RBI conducted 7 Day VRRR for INR 2 Tn, and it was fully subscribed at 5.24%. The latest banking system liquidity stands in surplus of ~INR 4094 Bn.
