• The 10-year benchmark government bond (6.33% GS 2035) opened 1bp higher at 6.56% on Monday. • Over the day, 10Y point hardened to 6.58% on fears that RBI may not cut rates at the MPC outcome post the high Q2FY26 GDP print. • The weakness in INR to a record low of INR 89.78/$ on importers dollar demand, also supported the uptrend in yields. • The focus will be on tomorrow’s SDL auction where the states would raise more than indicated in the calendar. 13 states will raise INR 313.50 Bn, higher than INR 210.00 Bn indicated in states' borrowing plan for Oct-Dec. • The 10Y point closed 2bp higher at 6.57% vs 6.55%.
