• On Monday, the 10-year benchmark (6.94% GS 2036) opened 3 bps higher at 6.94% tracking the rise in 10Y UST yield and elevated Brent crude prices. • The 10Y UST hardened following the hawkish undertone in Fed Chair Warsh’s Jackson Hole speech. Brent crude rose above $90/bbl amid fresh US-Iran retaliatory attacks, raising concerns over escalating Middle East tensions. • Over the day 10Y point touched the 6.96 levels ahead of the Q1 GDP data. India’s GDP grew 7.8% YoY in Q1 FY27, surpassing estimates of 7.1% 7.2%, supported by strong domestic consumption, higher investment and robust manufacturing activity. • The 10Y point closed the day 4 bps higher at 6.95% vs 6.91%. • Banking system liquidity remained in surplus at ~INR 5 Tn. RBI conducted multiple VRRR auctions to absorb excess liquidity.
