• On Tuesday, the 10-year benchmark government bond (6.94% GS 2036) opened 4 bps higher at 6.77%, tracking rise in the 10Y UST yield above 4.60% and an overnight surge in Brent crude prices above $85/bbl. • The move followed a third consecutive night of US strikes on Iran, raising concerns over potential disruptions to trade through the Strait of Hormuz and fueling inflationary fears. • India’s Domestic WPI data for June came at 9.87% on high food prices. • The 10Y IGB closed 6 bps higher at 6.79% vs 6.73%. • The latest banking system liquidity stayed in surplus of ~INR 1.39 Tn.
