Weekly Wrap on Bond Market Dynamics on October 16, 2026

• Bond yields rose after the RBI announced liquidity-tightening measures and stepped up foreign exchange operations to support the rupee. Investor sentiment weakened as the central bank proposed the sale of Rs. 25,000 crore of government securities, increased the daily Cash Reserve Ratio (CRR) maintenance requirement for banks to 99% from 90%, and directed oil companies to source their dollar requirements directly from the RBI rather than the spot foreign exchange market. However, losses were capped by easing U.S. Treasury yields after the U.S. Federal Reserve officials signalled little urgency for further interest rate hikes.