Yields end the day lower • On Monday, the 10-year benchmark government bond (6.33% GS 2035) opened 2 bps lower at 6.52%, after the size of the state bond auction, scheduled for Tuesday, turned out to be smaller than indicated. • The 8 states will borrow INR 128 Bn, lower than the indicated size of Bn (INR 291 Bn. • India's headline (CPI) inflation dropped to 1.54% in September 2025, the lowest level since June 2017, driven largely by a continued decline in food prices. • However, the Core inflation, which excludes volatile components such as food and energy, rose to 4.5% in September from 4.1% in August. The 10Y point ended lower at 6.52% vs 6.54%. • The latest banking system liquidity stands in surplus of ~INR 1551 Bn.
