Macro and Government Bond Commentary: Yields little changed in absence of fresh cues, spot INR strengthens further • The 10Y benchmark (6.79 GS 2034) opened higher at 6.64% in sync with global benchmarks, though this upside in yields did not sustain. Yields quickly fell in the morning session, and were ranged through the day, with the 10Y point closing trade at 6.63% vs 6.62% prev. The USD/INR pair fell further with stop losses being hit, triggering selling exporters, driving the pair to trade at 85.67 at 3:30pm IST. • As on 21st Mar, system liquidity deficit was at INR2.06tn (this number is without daily adjustments to CRR imbalances). Conditions will improve from here given RBI’s durable liquidity operations this week
