Macro and Government Bond Commentary: Yields reverse early upside with receiving in OIS, INR at fresh all-time low • 10Y benchmark (7.10 GS 2034) opened little lower at 6.81% (despite a rise in treasury yields overnight). Yields rose early in the afternoon, with spot INR rising to all-time high of 85.80 (Moves higher in the pair were limited on chatter of selling from exporters as well as PSU banks for the RBI). This upside in yields did not sustain, with chatter of shorts getting covered in lien with receiving in the OIS. The 10Y point closed trade at 6.79% vs 6.82% prev. • As on 3rd Jan, system liquidity deficit narrowed to INR 386bn (without adjusting for daily CRR imbalances)
