Macro and Government Bond Commentary: Yields rise with global benchmarks, INR falling to all-time low; RBI increases OMO purchase auction size to INR 400bn • The 10Y benchmark (6.79 GS 2034) opened little changed despite a rise in treasury yields overnight (following stronger than expected US BLS nonfarm payrolls along with a rise in inflation expectations). Yields edged higher with INR falling to its fresh life-time low of 87.95 tracking strength in the DXY after President Trump announced fresh tariff plans. However, further weakness was capped with chatter of strong RBI intervention heard along with exporters selling. The 10Y bond closed trade at 6.71% vs 6.70% prev.
