Macro and Government Bond Commentary: Yields fall with global benchmarks, revision in OMO auction, liquidity deficit narrows • The 10Y benchmark (6.79 GS 2034) opened lower at 6.69% tracking a fall in treasury yields overnight (following weaker than expected US retail sales) as well as on an upward revision in OMO purchase auction scheduled this week (securities maturing between 2030 and 2037 shall be bought). Yields were ranged through the day (after opening lower), with the 10Y point closing trade at 6.69% vs 6.71% prev. • As on 14th Feb, system liquidity deficit narrowed to INR 2.14tn (this is without adjustments to daily CRR imbalances).
