In this edition of Bond Compass, we highlight the key themes for Jun : • India yield curve steepened further in Jun, with the near end of the curve well supported by better liquidity conditions, while the far end witnessed selling pressure as markets perceived RBI MPC meeting outcome more cautious. • The RBI MPC cut rates by 50 bps, (with 5 members voting in favor of the outcome) against market expectations of a 25-bps cut. In addition, the RBI also announced to cut CRR by 100 bps in four equal tranches starting Sep’25 through Dec. The central bank revised FY26 inflation lower to 3.7% from 4% earlier.
