CURVE

In this issue, we cover:

• Market Moves: India’s 10Y G-sec yield rose 10 bps to 7.18%, while the US 10Y Treasury surged 29 bps to 5.29%, amid higher global yields, elevated crude, and inflation concerns.
• Global Rates: Global yields hardened, with US, UK and German 10Y yields at 5.29%, 5.43% and 3.58%, respectively, while China remained stable at 1.68%.
• Macro Indicators: CPI inflation rose to 4.82% in Aug’26, while the trade deficit narrowed to $26.86 bn. System liquidity remained in surplus at ~₹4.85 lakh crore.
• FPI Highlight: FPIs recorded ₹35,861 crore MTD equity outflows and ₹20,727 crore MTD debt outflows; debt flows remained positive on FYTD and CYTD basis.
• Segment Highlights:

i.                    Money Market: CP/CD rates rose 8–25 bps, as surplus banking liquidity declined amid RBI’s liquidity absorption measures.

ii.                  G-secs: Yields hardened across the curve amid ₹1 lakh crore planned OMO sales, higher global yields, elevated crude, and domestic rate concerns.

iii.                SDLs: SDL yields moved higher, tracking G-secs amid continued supply and RBI liquidity absorption measures.

• Corporate Bonds: AAA PSU yields moved higher across maturities, tracking G-secs amid inflation, crude, and global yield pressures.
• Product Snapshot: Covers category performance benchmarks and our full range of active and passive fixed income products.

CURVE reflects our continued commitment to provide relevant debt market updates. 

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