• On Monday, the benchmark 10Y bond (6.94% GS 2036) opened 4 bps higher at 7.34%, tracking RBI’s Liquidity measures announced on Friday post market hours. • On Friday, the RBI announced an OMO sale of INR 250 Bn (~$2.6 Bn) scheduled for 13 October 2026 and increased the minimum daily CRR maintenance requirement to 99% from 90% effective mid-October. • 10Y IGB hardened over the day to 7.39% tracking, Brent crude oil prices rising above $105 /bbl. Brent crude rose above $105/bbl after attacks in Saudi Arabia and tanker incidents near the Strait of Hormuz heightened concerns over regional oil supplies. • India’s retail inflation registered a sharp rise to 5.54% in September, up from 4.83% in August. It was largely led by food inflation, which jumped to 7.74%, from 5.97% previous month, led by strong rise in price of onion and other food items such as sugar, milk and cereals. 10Y point closed the day 9 bps higher at 7.39% vs 7.30%. • Banking system liquidity remained in surplus at ~INR 3.8 Tn. RBI conducted 3 day VRRR auction for INR 2 Tn to absorb excess liquidity, it saw subdued demand, with only INR 0.37 Tn subscribed at 5.24%.
