Macro and Government Bond Commentary: Yields edge lower with global benchmarks, correction in INR • 10Y benchmark (7.10 GS 2034) opened mildly lower at 6.85% tracking a fall in treasury yields overnight (following softer than expected US PPI inflation). Yields were ranged through the day on a downward bias, with some respite also coming from moves lower in spot INR (likely on selling from exporters). The 10Y point closed trade at 6.85%. • T-bill auction results: RBI sold 91-days T-bills at 6.60% for INR 120bn, 182-days T-bills at 6.72% for INR 80bn and 364-days T-bills at 6.70% for INR 80bn. • As on 14th Jan, system liquidity deficit narrowed to INR 2tn (without adjusting for daily CRR imbalances)
