Macro and Government Bond Commentary: Yields reverse early downside on profit booking, surplus liquidity widens • The 10Y benchmark (6.79 GS 2034) opened sharply lower at 6.45% tracking a sharp fall in treasury yields overnight (on global risk aversion). Moves lower in yields did not sustain on the back of weakness in INR. In addition, some profit booking was seen later in the day – driving the 10Y bond yield to close trade at 6.50% vs 6.48% prev.
