Macro and Government Bond Commentary: Yields mildly higher; RBI’s durable liquidity injection measures awaited • 10Y benchmark (6.79 GS 2034) opened mildly higher at 6.73% in absence of major global triggers. Yields were ranged through the day, with markets awaiting more clarity on central bank’s measures to inject liquidity. The 10Y point closed trade at 6.73% vs 6.72% prev. • RBI will conduct a daily VRR auction of INR 2tn tomorrow considering current liquidity developments in addition to 14-day VRR auction of INR 1.75tn. • As on 22nd Jan, system liquidity deficit widened to INR 2.87tn (without adjusting for daily CRR imbalances)
