• On Wednesday, the 10-year benchmark (6.94% GS 2036) opened steady at 6.82%, as participants remained cautious ahead of the RBI MPC minutes. • Brent continued to trade above $90/bbl and touched $92/bbl intraday amid escalating tensions in the Middle East, fading hopes of a peace deal. The 10Y UST continued to trade near 4.69% ahead of the FOMC minutes release post market hours. • The 10Y point closed the day 1 bp lower at 6.82% vs 6.83%. • Post market hours, RBI's August MPC minutes carried a hawkish undertone, with some members indicating that further easing is off the table, though the timing and trigger for potential policy recalibration after inflation peaks in Q3 remain open. • Banking system liquidity remained in surplus at ~INR 3.9 Tn. RBI conducted overnight VRRR auction for INR 1.5 Tn to absorb excess liquidity, accepting INR 1.25 Tn at 5.24%.
