Macro and Government Bond Commentary: Yields lower with softer H1 FY26 borrowing, year-end demand; liquidity conditions improve dramatically • The 10Y benchmark (6.79 GS 2034) opened mildly higher at 6.61% but traded with a downward bias through much of the day. Moves lower in yields was in sync with lesser than expected supply in H1 FY26 (at INR 8tn vs 8.3-8.5tn), along with strength in the INR. The 10Y point closed trade at 6.58% vs 6.60% prev. (H1 FY26 borrowing distribution: Within INR 8tn, around 25% of the borrowing was set for 3-7Y bonds, 40% for 10-15Y bonds, and 35% for 30-50Y papers).
