• On Thursday, the 10-year benchmark government bond (6.94% GS 2036) opened steady at 6.77% amid lack of fresh cues. • Brent crude hovered around $80/bbl through the day after reports that Iran has reached an agreement with Oman on a shipping route through the Strait of Hormuz, raising hopes of easing Middle East tensions. • The 10Y IGB traded in a narrow 6.76-6.77% range, tracking developments in the Middle East and caution ahead of Friday's weekly IGB auction. • The 10Y point closed the day flat at 6.77%. • The latest banking system liquidity stayed in surplus of ~INR 3.4 Tn. The RBI conducted a 4-day VRRR auction of INR 1.5 Tn to absorb surplus liquidity, with ~INR 1.3 Tn subscribed at 5.24%.
