Macro and Government Bond Commentary: Yields broadly steady ahead of RBI MPC meeting outcome • The 10Y benchmark (6.79 GS 2034) opened mildly lower at 6.65% tracking a fall in treasury yields overnight (following softer than expected bond supply). Yields were ranged through the day, with markets closely watching out for the RBI MPC meeting outcome. Markets have already priced in a 25-bps rate cut at the meeting outcome tomorrow. The 10Y point closed trade at 6.66%. • As on 05th Feb, system liquidity deficit was at INR 450bn. The RBI announced a daily VRR auction of INR 1.5tn in addition to the 56-day VRR of INR 500bn
