Macro and Government Bond Commentary: Yields mildly higher with INR recording single biggest day fall in 3 weeks • The 10Y benchmark (6.79 GS 2034) opened little changed at 6.70% in absence of fresh cues and was ranged until noon trade. Yields started edging higher early in the afternoon tracking weakness in INR. This was said to be on account of demand from importers (month-end) along with shortcovering from banks ahead of the front-month currency futures contract expiry (as per media reports). The currency traded at 87.21 at 3:30 pm, with further weakness capped on chatter of sales from banks (likely for the RBI) – seen around 87, and 87.21 levels. The 10Y point closed trade at 6.71% vs 6.70% prev
