Macro and Government Bond Commentary: Yields rise with global benchmarks following more hawkish FOMC meeting outcome, weak INR • 10Y benchmark (7.10 GS 2034) opened higher at 6.82% tracking a rise in treasury yields overnight (following more hawkish than anticipated FOMC meeting outcome). Yields rose further – also in line with depreciation in INR (which slipped to its fresh life-time low levels). The 10Y point closed trade at 6.82% vs 6.79% prev. (The FOMC indicated only 50 bps easing next two years – keeping median fed fund rate higher). • As on 18th Dec, system liquidity deficit widened to INR 1.50tn (without adjusting for daily CRR imbalances). This is after quarterly advance tax outflows
