Macro and Government Bond Commentary: Yields fall with receiving in OIS, liquidity deficit narrows markedly following USD/INR buy sell swap auction • The 10Y benchmark (6.79 GS 2034) opened mildly higher at 6.73% tracking a rise in treasury yields overnight. However, yields fell in the morning session and fell further through the day – this downside in yields were aided by receiving in OIS along with strength in the INR. In addition, a segment of markets is anticipating that the RBI may announce OMO purchase. The 10Y point closed trade at 6.71%.
