• The 10-year benchmark government bond (6.48% GS 2035) opened 2bp higher at 6.71% ahead of India’s Q3FY26 GDP data and the weekly bond auction. • Over the day, the 10Y point lowered after the cut-off yields on at the auction was largely in line with expectations. RBI offered 6.48% GS 2035 at 6.7134%. • The GDP data also warranted the fall in 10Y yield. India’s Q3FY26 GDP data came at 7.8% compared to expectations of 7.5%, the second quarter FY26 GDP was revised higher at 8.4% from 8.2%. • INR ended lower at 90.98/$ vs 90.91/$ on dollar buying by importers and likely FII outflows from local equities. • Meanwhile, the 10Y point closed 3bp lower at 6.66% vs 6.69%. The latest banking system liquidity stands in surplus of ~INR 2109.14 Bn.
