• On Wednesday, the 10-year benchmark government bond (6.94% GS 2036) opened 3 bps higher at 6.73%, tracking the rise in the 10 year UST yield to 4.55%. • The move followed renewed geopolitical tensions after overnight US strikes on Iran, which also pushed Brent crude above $75/bbl. • Yields hardened further during the day following the US President's comments that the ceasefire with Iran is over, raising concerns over the prospects of a US-Iran peace deal. • 10Y point closed 6 bps up at 6.76% vs 6.70%. • The latest banking system liquidity stayed in surplus of ~INR 1.25 Tn
