Macro and Government Bond Commentary: Yields fall sharply following RBI’s OMO purchase announcement, positioning for change in stance in Apr MPC begins • The 10Y benchmark (6.79 GS 2034) opened sharply lower at 6.54% following RBI’s announcement of an OMO purchase of INR 800 bn (in four equal tranches this month). Yields fell further, and traded with a downward bias through the day, with a segment of markets positioning for a potential change in stance in the April policy meeting. The 10Y point closed trade at 6.48% vs 6.58% previous, with good receiving seen in the OIS segment as well.
