• On Wednesday, the 10-year benchmark government bond (6.94% GS 2036) opened 1 bp higher at 6.79%. • Brent crude continued to trade around $89/bbl amid fading hopes of a peace deal and reports of attacks on ships in the Strait of Hormuz. • Participants remained cautious ahead of domestic and US CPI data, with the 10Y point trading in a 6.77%-6.79% range. • India CPI number came at 4.45% broadly on expected lines. Food inflation remained elevated at 5.52% YoY in July 2026, adding to overall price pressures. The 10Y point closed the day flat at 6.78%. • The latest banking system liquidity stayed in surplus of ~INR 3.34 Tn. RBI conducted overnight VRRR auction for INR 750 Bn to absorb the excess liquidity.
