• On Wednesday, the benchmark 10Y bond (6.94% GS 2036) traded near 7.39 levels in early trades tracking Brent crude near $107/bbl levels. • Brent crude rose after the Houthis intensified their attacks on Saudi energy infrastructure raising supply concerns. • 10Y point traded in the range of 7.39-7.41% ahead of the WPI data. India’s WPI inflation rose to 11.39% YoY in September from 9.92% in August, exceeding market expectations of 10.6%, driven by higher prices of fuel & power, food articles, and manufactured products. • In the weekly T-Bill auction, cut-offs stood at 5.73% for 3M, 6.29% for 6M and 6.49% for 1Y T-Bills. 10Y point closed the day 3 bps higher at 7.40% vs 7.37%. • Banking system liquidity remained in surplus at ~INR 3.3 Tn. RBI conducted overnight VRRR auction for INR 0.5 Tn to absorb excess liquidity accepting INR 0.25 Tn at 5.49 %. INR closed the day at 95.15/$ with DXY hovering around 102.5.
