With inflation far below target and the Fed pivoting to cuts, we see some scope for respite to bond markets coming from the policy space opening up for an additional 25-50 bps cut by the RBI. Fiscal slippage concerns, even after accounting for the GST reforms and impact of tariffs, may fade and provide further relief. The yield curve in 2HFY26 could flatten marginally, given (1) the higher supply in the shorter end, (2) lower supply in the far end (given the lower supply in absolute and relative terms as compared with 1HFY26) and (3) a seasonal pick-up in domestic institutional demand.