Yields end the day lower • On Wednesday, the 10-year benchmark government bond (6.33% GS 2035) opened 1 bp lower at 6.49% tracking a fall in US Treasury yields. • The US 10Y point dipped as dismal US retail sales data (0.2% in Sep vs 0.6% in Aug) made a stronger case for a December rate cut in the US. • Over the day, the 10Y bond yield remained steady as traders await India’s GDP data along with the weekly gilt auction for further direction. India’s Q2FY26 GDP print is the final major data point before the RBI MPC meeting on Dec 3-5 and is expected to come around 7.2%. • Meanwhile, Indian rupee ended lower at 89.27/$ on importers dollar demand. However, the Reserve Bank intervention chatter continued. • The latest banking system liquidity stands in surplus of ~INR 1337.99 Bn. The 10Y point closed 1 bp lower at 6.49% vs 6.50.
