Macro and Government Bond Commentary: Yields mildly lower with global benchmarks, liquidity surplus widens ahead of GST outflows next week • The 10Y benchmark (6.79 GS 2034) opened mildly lower at 6.26% tracking a fall in treasury yields overnight (following weaker than expected PPI inflation as well as soft retail sales). Some profit booking was seen in the morning session, though any sharp upside in yields was limited. Yields were ranged through the rest of the day, with the 10Y point closing trade at 6.27%. • Weekly auction results: RBI sold 6.79 GS 2031 at 6.07% for INR 110bn, and 7.09 GS 2074 at 6.85% for INR 140bn.
