Mumbai, Aug. 25 -- Reserve Bank of India (RBI) stated in its latest monthly bulletin that system liquidity improved in July and August. The liquidity surplus narrowed in the second half of July on account of tax outflows, but it went up in August on account of drawdown of the government cash balances and measures taken to attract capital inflows. Overnight money market rates softened towards end-July and August. While yields on 3-month treasury bills remained largely range-bound, those on commercial papers (CPs) and certificate of deposits (CDs) softened. The 10-year G-sec yields briefly hardened in July, reflecting renewed geopolitical tensions in West Asia, volatile crude oil prices, and higher US treasury yields. While the yields softe...