Macro and Government Bond Commentary: Yields mildly lower ahead of the RBI MPC meeting outcome • The 10Y benchmark (6.79 GS 2034) opened mildly lower at 6.25% tracking a fall in treasury yields overnight (following soft US data). Yields were broadly ranged through much of the day, with participants awaiting RBI MPC meeting outcome on Friday. A 25-bps rate cut by the MPC is already priced in, though any revision in liquidity guidance will be closely watched out. The 10Y point closed trade at 6.25%. There has been a chatter of RBI widening the policy corridor (with SDF being the lower bound and MSF the upper bound rate), with gap between the SDF and repo likely to be increased to 50 bps.
