Macro and Government Bond Commentary: Yields continue lower likely on optimism following SEBI’s draft circular to ease compliance for FPIs, positioning ahead of RBI surplus transfer announcement • The 10Y benchmark (6.79 GS 2034) opened little changed at 6.33% but started edging higher in the morning session tracking US treasury yields (despite softer than expected US headline CPI inflation). This upside in yields did not sustain, and demand was seen around late morning onwards, and this continued through the day. A part of the rally was said to be on optimism following SEBI’s proposal to simplify registration and compliance for FPIs investing into government bonds. In addition, demand could also be on positioning ahead of RBI’s surplus transfer for FY25. The 10Y bond closed trade at 6.29% vs 6.33% previous
