Macro and Government Bond Commentary: Yields fall with announcement of durable liquidity injection, treasury yields • The 10Y benchmark (6.79 GS 2034) opened lower tracking a sharp fall in treasury yields overnight along with an OMO purchase announcement of INR 400bn (to be held on 17th April). Yields were ranged ahead of the CPI inflation release. The headline inflation came in weaker than expected at 3.34% vs 3.5% exp and 3.6% previous, with continued disinflation in food (helped by sharper deceleration in vegetable prices). Following inflation data release, some profit booking was seen with the core CPI inflation edged higher to 4.2% (driven by health, transport, communication, and education segments). However, this upside in yields did not sustain. The 10Y point closed trade at 6.41% vs 6.44% prev
