• The 10-year benchmark government bond (6.48% GS 2035) opened steady at 6.84%. • Over the day, 10Y yield dropped to 6.81% level on short-covering by traders. The bond market also got support from the appreciation in INR amid higher risk appetite after Trump paused strikes on Iran's power plants for five days. Indian rupee ended higher at 93.8650/$ vs 93.9750/$. • Meanwhile, the SDL auction witnessed weaker demand, taking the cutoff yields higher than market expectations. RBI offered 10Y Maharashtra at 7.57%, 10Y Punjab at 7.80%, 10Y Rajasthan at 7.65%. • The 10Y point ended 3bp higher at 6.87% vs 6.84% as traders were caution about holding positions overnight amid uncertainty about the war in West Asia. • The latest banking system liquidity stands in surplus of ~INR 261.96 Bn.
