• On Friday, the 10-year benchmark government bond (6.48% GS 2035) opened flat at 6.99% ahead of the RBI MPC outcome. • Over the day, 10Y bond yield dropped to 6.93% after Reserve Bank of India led monetary policy committee unanimously kept policy repo rate unchanged at 5.25%. • India's Q4FY26 GDP came at 7.8% vs expectation of 7.3% and 8% in Q3FY26. The growth in the fourth quarter was robust despite the headwinds from the geopolitical shocks. • Meanwhile, the weekly auction cut-off worth INR 340 Bln came largely in line with market expectations, 6.94% GS 2036 at 6.9686%. • The 10Y point closed flat at 6.98%. The latest banking system liquidity stands in surplus of ~INR 1887.71 Bn.
