• On Friday, the 10-year benchmark government bond (6.48% GS 2035) opened steady at 6.64% on caution ahead of the INR 290 Bn weekly auction. • Over the day, the 10Y point elevated tracking the rise in 5-year OIS and crude oil prices. The Brent crude oil futures for May delivery surged to $87/barrel amid the military conflict in the Persian Gulf region weighing on the bond prices. • Meanwhile, the cut-off at the weekly bond auction was broadly in line with expectations. RBI offered 6.68% GS 2040 at 7.0848% and 6.90% GS 2065 at 7.4940%. • INR ended lower at 91.74/$ vs 91.60/$ as crude oil prices surged on reports that Bahrain's largest oil refinery was struck by Iranian missiles, triggering fresh concerns over disruption in the global oil market. • Meanwhile, the 10Y point closed 5bp higher at 6.69% vs 6.64%. The latest banking system liquidity stands in surplus of ~INR 3024.39 Bn.
