• On Wednesday, the benchmark 10Y bond (6.94% GS 2036) opened 1 bp lower at 7.15%, tracking the decline in Brent crude below $105/bbl and the easing in 10Y UST yields to around 5.23%. • Brent crude traded near $103/bbl amid easing supply concerns, while the 10Y UST yield eased to 5.23% after dovish comments from Fed's John Williams, who said he does not see an urgent need for further rate hikes. • The 10Y IGB traded in the 7.14–7.16% range before hardening towards the end of the session to 7.19%, as some participants likely placed short bets and booked profits. • Higher T-bill cut-offs also weighed on sentiment, with the 3M, 6M, and 1Y T-bills cut off at 5.52%, 5.96%, and 6.18%, respectively. The 10Y point closed 3 bps higher at 7.19% vs 7.16%. • Banking system liquidity remained in surplus at ~INR 4.6 Tn. RBI conducted overnight VRRR auction for INR 2 Tn to absorb excess liquidity, accepting INR 0.85 Tn at 5.24%.
