• The 10-year benchmark government bond (6.48% GS 2035) opened 2bp higher at 6.96% on an overnight rise in crude oil prices and US Treasury yields. • Over the day, 10Y yield elevated further as the Brent crude futures surged past $110/barrel. • Meanwhile, the SDL auction witnessed better demand, taking the cutoff in line with market expectations. RBI offered 10Y Uttar Pradesh at 7.72%, 10Y Uttarakhand at 7.69%. • INR ended over four-week low against the dollar amid risk-off sentiment due to uncertainty over the US-Iran peace talks. INR ended 94.50/$ vs 94.10/$. • The 10Y point ended 4bp higher at 6.98% vs 6.94%. The latest banking system liquidity stands in surplus of ~INR 2749.25 Bn.
