• On Monday, the 10-year benchmark government bond (6.94% GS 2036) opened 4bp lower at 6.85% tracking a significant fall in Brent crude oil prices after the US and Iran announced a ceasefire agreement early today. • Over the day, the 10Y yield stayed lower as Brent crude oil prices were below $85/barrel level. • However, few traders booked profits later in the day. India's May WPI data based on the new series came at 9.68%, higher than 8.26% in April largely on account of higher inflation recorded in food and fuel. • INR ended at an over-five-week high against the dollar as crude oil prices dropped sharply after the US and Iran reached an agreement that could end the war in West Asia and reopen the Strait of Hormuz. INR ended at 94.71/$ vs 95.11/$. • The 10Y point closed 2bps lower at 6.87% vs 6.89%. The latest banking system liquidity stands in surplus of ~INR 1728.56 Bn.
