Macro and Government Bond Commentary: Yields continue lower with receiving in OIS; RBI liquidity injection measures awaited • 10Y benchmark (6.79 GS 2034) opened little changed at 6.74% in sync with global benchmarks. Yields were ranged through the day, but with a downward bias, with the 10Y point closing trade at 6.72% vs 6.74% prev. Moves lower in yields were in line with receiving in OIS. • RBI overnight VRR auction result: The RBI accepted bids worth INR 1.25tn (same as INR 1.25tn notified) and INR 1.72tn bids received !! – indicating the need for liquidity. The central bank will conduct daily VRR of INR 1.25tn on 23rd Jan. • As on 21st Jan, system liquidity deficit widened to INR 2.73tn (without adjusting for daily CRR imbalances)
