• On Wednesday, the 10Y benchmark (6.48 GS 2035) opened 2bp higher at 7.13% tracking the sharp overnight rise in US 10Y bond yield amid rise in crude oil prices. • Over the day, yields reversed due to an intraday decline in US Treasury yields and Brent crude prices. • Also, expectations of higher transfer of dividend to the Centre from RBI supported the sentiments. Market participants expect INR 3.5 trln surplus for FY26. • The INR dropped to a fresh record low of 96.96/$ amid higher crude oil prices and continuous exit of foreign investors from the Indian market. However, the rupee's fall was limited by RBI intervention to support the currency. Indian rupee ended at 96.82/$ vs 96.53/$. • The 10Y point closed 3bps lower at 7.08% vs 7.11%. The latest system liquidity stands in surplus of ~INR 1508.71 Bn.
