• On Monday, the 10-year benchmark government bond (6.94% GS 2036) opened steady at 6.77%. • Brent crude rose nearly 3% to $84/bbl amid no progress on the Strait of Hormuz reopening, as Iran and Oman continued negotiations. • The 10Y IGB traded in the 6.76–6.77% range, with yields supported by likely foreign portfolio purchases. • The 10Y benchmark closed 1bp lower at 6.76% vs 6.77%. Markets now await domestic and US CPI data due this week, with India CPI expectations around 4.5%. • The latest banking system liquidity stayed in surplus of ~INR 3.49 Tn. RBI conducted multiple VRRR auctions to absorb the excess liquidity.
