Macro and Government Bond Commentary: Yields mildly higher as core inflation edges upwards, US inflation beats expectations • The 10Y benchmark (6.79 GS 2034) opened flat at 6.70% despite a continued rise in treasury yields (on positioning ahead if US CPI inflation as well as Chair Powell’s remarks of no urgency to cut rates). Yields were ranged through the day, despite India CPI inflation coming softer than expected. The 10Y bond closed trade at 6.70%. • India Jan CPI inflation was at a 5-month low of 4.31% vs 4.60% exp – aided by softer food inflation (with moderation seen in fruits, vegetables, pulses and eggs). However, core inflation inched higher to 3.74% vs 3.64% previous on the back of personal care and effects segment (driven by gold and silver prices)
