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 (after a pause in October) given benign inflation, easy liquidity conditions and resumption of the Fed’s rate cut cycle. 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.