• The 10-year benchmark government bond (6.48% GS 2035) opened 3bp higher at 6.69% tracking the surge in crude oil prices after the attack by the US and Israel on Iran, followed by Tehran's retaliation over the weekend.. • The 10-year government bond weakened during the day, with the yield touching 6.70% on profit booking. Traders also refrained from placing aggressive bets ahead of the result of the weekly state bond auction and switch auction. • However, the yield dropped to 6.67% on speculation of RBI intervention through on-screen buying. Indian rupee ended lower at 91.47/$ vs 90.98/$. • The 10Y point closed 2bp higher at 6.68% vs 6.66%. • The latest banking system liquidity stands in surplus of ~INR 2126.21 Bn.
