Macro and Government Bond Commentary: Yields higher with global benchmarks, India CPI inflation slows along expected lines; RBI announced VRR auction of INR 750bn • 10Y benchmark (7.10 GS 2034) opened higher at 6.77% tracking a rise in treasury yields overnight. Yields were ranged ahead of India CPI inflation, which came along expected lines. The 10Y point closed trade at 6.78% vs 6.75% prev. • India Nov CPI inflation came in at 5.48% YoY vs 6.21% previous – this was largely along expected lines with winter disinflation in select food items (vegetables and pulses) offsetting a rise in meat and edible oils. The core inflation (excluding food, fuel and tobacco) also edged lower to 3.72% vs 3.77% previous with slower inflation in transportation & communication and personal care and effects segment.
