PBOC conducted a 65 bln yuan 7-day reverse repo today; bid volume 65 bln yuan, amount allotted 65 bln yuan, rate 1.40%, unchanged.

A senior IMF official said rising government bond yields have become the biggest emerging risk to global financial stability. Asanastios Vamvakidis, deputy director of the IMF’s capital markets division, said yield increases since the IMF’s April assessment are the clearest change in the risk outlook. He flagged other growing vulnerabilities, including the risk of an AI-driven market pullback, but called the sharp rise in sovereign yields a more direct and urgent threat. With the US‑Iran conflict pushing up inflation and central banks responding with rate hikes, borrowing costs in the US, Europe and Japan have risen to multi-decade highs, raising investor concern that high debt levels combined with rising refinancing costs will intensify fiscal pressure on governments.

India's annual CPI rose to 5.54% in September, the highest since late 2024 and approaching the Reserve Bank of India's 2–6% tolerance band, the Ministry of Statistics and Programme Implementation said on Monday. The print exceeded August's revised 4.83% and was in line with economists' survey median of 5.58%. The reading reinforces the RBI's decision last week to raise rates for the first time in nearly four years. Indian government bonds sold off after the release: the benchmark 10-year yield rose about 10 bps to 7.40%. Food was the main driver, with food inflation jumping to 7.74% in September from 5.97% in August; food accounts for over one-third of the CPI basket and below-normal rainfall is expected to add further price pressure in coming months.