Macro and Government Bond Commentary: Yields close steady in absence of major cues • 10Y benchmark (7.10 GS 2034) opened flat in absence of major cues overnight. Some selling was seen ahead of the auction result, which was largely along expected lines. The 10Yr point closed trade at 6.82% vs 6.82% prev. • RBI weekly auction results: RBI offered 6.79 GS 2034 at 6.80% for 220bn and 7.09 GS 2074 paper at 7.07% for INR 100bn. • As on 2nd Jan, system liquidity deficit was at INR 0.67tn (without daily adjustments to CRR imbalances).
