Is there a way to set the page content to overprint the watermark so the colour is not knocked out underneath?
The image below shows a zoomed preview of the 'Return to CSR' PDF after adding the 10% Yellow tint watermark.
As you can see, the yellow is not present underneath the blue text.
Create a PDF of a vector object in the desired color. Then use the watermark component to place it under the existing content of the document.