Making Sense

For India, WPI rose 0.27% mom with Food masking the otherwise deceleration in prices of non food article / Fuel and Power / Manufactured Products. System Liquidity Deficit stood at Inr 224K crore and WACR traded at 6.69%.  The Governor of the Reserve Bank of India met with senior management from Public and Private Sector Banks, emphasizing vigilance in areas such as risk management, customer protection, and financial stability. Yield on IN10s opened lower at 7.10% after the 7.14% peak seen yesterday.  US yields pulled back sharply which could be attributed to the Fed Speakers dovish tone / lower Dec PPI revision and expectations of a softer PCE reading. S&P lifted off lows to close 0.90% higher on the day. The market is currently pricing in 97 bps of rate cuts into 2024.  Yields High Low Close DoD ▲ US 2Y          4.67      ...

 US Equities closed in the green with S&P 500 closing the day 1% higher and Nasdaq closing the day 1.20% higher. The USD index pulled back from 106.63 to 106.18 levels as risk sentiment improved on diplomatic efforts. President Biden will visit Israel on Wednesday, Secretary of State Antony Blinken said in Tel Aviv. Yields on US2s rose to 5.10% and US10s rose to 4.73% and US2s10s bear steepened to -40 bps from last week's close of -45 bps.   NY Empire State Mfg index gauges business conditions for NY manufacturers. The index came in at -4.60 f/c -7.  Fed's Harker comments: the Central Bank should not create new pressures in the economy by increasing the cost of borrowing. "We should not at this point be thinking about any increases" Earnings Results from Bank of America, Goldman Sachs and Bank of New York Mellon are on Tuesday's Calendar. Economic releases scheduled on the day - U.S. retail sales, industrial production and business inventories data.  India W...