Macro and Government Bond Commentary: Yields rise with global benchmarks, liquidity deficit widens ahead of OMO purchase auction • The 10Y benchmark (6.79 GS 2034) opened slightly higher at 6.71% with a sharp rise in treasury yields overnight (after US CPI inflation beat expectations). Yields were ranged, with a slightly upward bias on the day, with the 10Y point closing trade at 6.71% vs 6.70% prev. • As on 12th Feb, system liquidity deficit was at INR 2tn (without adjusting to daily CRR imbalances.
