• On Monday, the 10-year benchmark government bond (6.94% GS 2036) opened 2 bps higher at 6.73%, tracking higher Brent crude prices and a rise in US Treasury yields after US strikes on Iran over the weekend escalated Middle East tensions. • Hopes that Indian sovereign bonds could be included in Bloomberg's flagship Global Aggregate supported the bond prices. • India's CPI inflation rose to 4.38% in June, exceeding the RBI's 4% target for the first time in 17 months, driven by persistent food price inflation. • 10Y point closed 2 bps higher at 6.73% vs 6.71%. • The latest banking system liquidity stayed in surplus of ~INR 1.1 Tn.
