• On Wednesday, the 10-year benchmark government bond (6.94% GS 2036) opened 3 bps lower at 6.78% tracking the decline in Brent crude prices below $80/bbl amid hopes of de-escalation in the Middle East. However, market participants remained cautious ahead of the RBI MPC policy outcome. • The Reserve Bank of India led Monetary Policy Committee (MPC) unanimously kept the policy repo rate unchanged at 5.25% and retained its 'neutral' policy stance. • The RBI revised its FY27 GDP growth forecast upward to 6.7% (from 6.6%) while lowering its FY27 inflation projection by 10 bps to 5.0%. • The 10Y point closed the day 4 bps lower at 6.77% vs 6.81%. • The latest banking system liquidity stayed in surplus of ~INR 3.3 Tn.
