Macro and Government Bond Commentary: Yields little changed, liquidity deficit narrows • The 10Y benchmark (6.79 GS 2034) opened little changed at 6.70% despite a rise in treasury yields overnight (following stronger than expected US ISM services PMI). Yields were ranged through much of the day, with markets already positioned for a 25-bps rate cut by the MPC this Friday. The 10Y point closed little changed at 6.70%. • As on 03rd Feb, system liquidity deficit narrowed to INR 1.08tn likely, with month-end GOI spending. This is without adjustments to daily CRR imbalances
