• On Thursday, the 10-year benchmark (6.94% GS 2036) opened 4 bps lower at 6.94% tracking robust FCNR (B) flows at $127.2 Bn. • Total inflows reached $136.3bn, far exceeding market estimates, with $3.8 Bn via ECBs and $5.2 Bn through OFCBs. • Over the day Brent crude prices hit fresh six-week highs at $97/bbl after renewed US-Iran tensions and Israeli threats against Tehran raised concerns over potential disruptions in supplies. • The 10Y IGB hardened from its intraday low of 6.94% to 6.97%, tracking the rise in Brent crude prices. The 10y point closed the day 2 bps lower at 6.96% vs 6.98%. • Banking system liquidity remained in surplus at ~INR 9.7 Tn. RBI conducted multiple VRRR auctions to absorb excess liquidity.
