Macro and Government Bond Commentary: Yields closed higher • On Monday, the 10Y benchmark (6.33 GS 2035) opened steady at 6.48% as market participants-maintained caution ahead of US FOMC policy outcome. • The uptick in India’s CPI inflation for August increased bets of a status quo by RBI at the Oct policy, supported the yields. The 10Y IGB ended at 6.50%. • The latest system liquidity stands in surplus of ~INR 2661 Bn.
