Q1 - If there is a government auction â more bonds are sold to the system and money is taken out from the system and given to the govrnmentt. So a govt auction leads to lower Liquidity and this is bad for the bond markets. Is this correct ? Q2 â If there is no government auction coming then there is more liquidity. This will help bonds more at the shorter end than the longer end. What does this mean ? Q3 - Large borrowing program by the government is bad for the bond market. But more for the longer end. What does this mean ?