Macro and Government Bond Commentary: Yields reverse early upside, liquidity deficit narrows • 10Y benchmark (7.10 GS 2034) opened little changed at 6.82% despite a rise in treasury yields overnight (with markets worrying around the impact of the upcoming administrations’ reflationary policies). Moves higher in yields reversed with appreciation in INR, though this was short-lived. The 10Y point closed trade at 6.80%. • As on 27th Dec, system liquidity deficit narrowed to INR 1.83tn (without adjusting for daily CRR imbalances).
