Macro and Government Bond Commentary: Yields reverse early upside along with INR, auction results along expected lines • The 10Y benchmark (6.79 GS 2034) opened higher at 6.43% continuing the selling momentum on worries around escalating tensions between India and Pakistan. Yields edged higher in the morning session, with underwriting cut-off coming much higher (likely on border tensions and caution ahead of the long weekend). Early afternoon trade saw yields edge lower, and this downside continued for much of the day – also aided by recovery in the INR (with anecdotes of RBI intervention). The 10Y point closed trade at 6.38% vs 6.40% prev
