Macro and Government Bond Commentary: Yields mildly lower, FOMC meeting outcome watched • 10Y benchmark (7.10 GS 2034) opened lower at 6.79% despite steady moves in treasury yields (with stronger than expected US retail sales offset by weak industrial production data). Yields were ranged through the day as market participants awaited FOMC meeting outcome late tonight. The 10Y point closed trade at 6.79% vs 6.80% prev. • As on 17th Dec, system liquidity deficit widened to INR 1.45tn (without adjusting for daily CRR imbalances). This is after quarterly advance tax outflows.
