Macro and Government Bond Commentary: Yields fall despite moves higher in global benchmarks, liquidity deficit widens further • 10Y benchmark (6.79 GS 2034) opened mildly lower at 6.72% despite a rise in treasury yields overnight (with an increase is weekly jobless claims seen transient). Yields were ranged and traded with a downward bias on the day despite weaker than expected weekly auction results. The 10Y point closed trade at 6.72% vs 6.73% prev. • RBI WSS showed central banking buying bonds of INR 101.75bn in the 17th of Jan week. The central bank shall conduct daily VRR auction of INR 2tn on 27th Jan. • As on 23rd Jan, system liquidity deficit widened to INR 3.34tn (-1.47% of NDTL) after adjusting for daily CRR imbalances
