Macro and Government Bond Commentary: Yields fall on positioning ahead of MPC meeting, liquidity surplus widens on month-end GOI spending • The 10Y benchmark (6.79 GS 2034) opened mildly lower at 6.27% despite a rise in treasury yields overnight, with further buying witnessed in the morning session. Moves lower in yields halted early in the afternoon on profit booking along with weakness in INR. The 10Y point closed trade at 6.25% vs 6.27% previous. • As on 02nd Jun, liquidity surplus was at INR 2.7trillion.
