• On Tuesday, the 10-year benchmark government bond (6.94% GS 2036) opened 1 bp lower at 6.76%, supported by softer crude oil prices amid the continued pause in US-Iran hostilities. • Market participants remained cautious ahead of today's weekly SDL auction and the FOMC policy outcome due tomorrow. • The cut offs for weekly SDL auction came slightly higher than expectations, with 5Y MH coming at 6.99%, 9Y GJ at 7.37% and 23Y MH at 7.67%. • The 10Y point closed 1 bp higher at 6.78% vs 6.77% as some participants likely booked profits ahead of the Fed FOMC policy outcome tomorrow. • The latest banking system liquidity stayed in surplus of ~INR 1 Tn.
