Macro and Government Bond Commentary: Yields close lower with fading border tensions, positioning ahead of softer IN CPI inflation • The 10Y benchmark (6.79 GS 2034) opened lower with a gap at 6.32% on de-escalating border tensions as well as on position ahead of India CPI inflation. Some profit booking was seen early in the afternoon with global benchmarks. India CPI inflation came in below than expected at 3.16% vs 3.2% expected – with an accelerated deceleration in vegetable prices. The core inflation was mildly higher at 4.22% vs 4.2% previous – led by education, transport and communication segments. Afternoon trade saw yields drop to close trade at 6.33% vs 6.38% previous.
