Macro and Government Bond Commentary: Yields rallied tracking improving Geopolitical situation • The 10Y benchmark (6.79 GS 2034) opened better today at 6.35% with improving risk sentiments and fall in crude prices. It traded range bound through the day and rallied in closing hours. The 10Y point closed trade at 6.34%. • RBI announced 7-day VRRR auction for INR 1trillion. • RBI SDL auction results: RBI offered 10Y SDLs at 6.74%, 15Y SDL at 7.04%, 25Y SDL at 7.10%, and 30Y SDL at 7.09%. • As on 23th Jun, liquidity surplus was at INR 2.43trillion, though conditions should start moderating from here on GST outflows.
