• On Monday, the 10-year benchmark government bond (6.48% GS 2035) opened flat as the escalation in the West Asia war may offset the impact of measures taken by the RBI MPC to attract foreign inflows. • Over the day, the fall in Brent crude oil after US Trump said Israel and Iran are looking to do an immediate ceasefire and that peace talks in West Asia are proceeding kept the 10Y point on a lower note. • Meanwhile, Indian rupee dropped on importers dollar demand, with INR ended at 95.71/$ vs Friday’s closing of 94.95/$. • The 10Y yield closed 3bp lower at 6.95% vs 6.98%. • The latest banking system liquidity stayed in surplus of ~INR 1661.39 Bln.
