Macro and Government Bond Commentary: Yields mildly higher with global benchmarks, liquidity surplus narrows • 10Y benchmark (7.10 GS 2034) opened little changed at 6.77% despite moves higher in treasury yields overnight (on positioning ahead of the FOMC meeting outcome this week along with crucial data readings). Yields were ranged through the day, and traded with an upward bias with the 10Y point closing trade at 6.79%. In addition, weakness in INR also weighed. The pair closed trade at record of 84.87, with chatter of importers demand heard. • As on 13th Dec, system liquidity surplus was at INR 232bn (without adjusting for daily CRR imbalances)
