• On Friday, the 10-year benchmark government bond (6.48% GS 2035) opened flat at 6.73%. • Over the day, the 10Y point elevated to 6.78% level as Brent crude oil prices for May delivery rose above $110 per barrel intraday and the rupee plunged to a record low of 93.76/$. • INR ended lower at 93.71/$ and logged its biggest single day fall in over four years as crude oil prices continued to rise amid escalating tensions in West Asia. • However, the bond prices recovered most of their losses on short-covering and speculation that the RBI bought gilts in the secondary market in the latter half of the session. • The 10Y point closed 1bp higher at 6.74% vs 6.73%. The latest banking system liquidity stands in surplus of ~INR 168.75 Bn.
