• On Monday, the 10-year benchmark government bond (6.94% GS 2036) opened 1 bp higher at 6.77%, following the RBI’s decision to advance the closure of the FCNR(B) window amid strong inflows. • On Friday, post market hours the RBI announced the early closure of the FCNR(B) window on August 31, after inflows reached $52.3 Bn by August 13, close to the $56.85 Bn raised under the broader scheme. • The 10Y yield touched 6.81% during the day as participants trimmed positions, while elevated Brent crude prices near $89/bbl also weighed on bonds. • The 10Y point closed the day 5 bps up at 6.81% vs 6.76%. • Banking system liquidity remained in surplus at ~INR 3.98 Tn. RBI conducted overnight VRRR auction for INR 1 Tn to absorb excess liquidity, accepting INR 0.96 Tn at 5.24%.
