Daily Flows
- We continue to see activity in semi-government floating lines, with volume traded in the TCV 2031 FRN.
- With demand in the banking sector limited due to mid-month flow peaks, there are minimal homes for funds.
- That said, State Bank of India continues to offer exceptional rates at 5.15% for 12 months.
U.S. PPI Surprises on the Upside, but Details Softer
- US PPI rose 0.4% m/m in January, above forecasts (0.3%) but below December’s upwardly revised 0.5%, driven by higher food and energy prices.
- Goods prices increased 0.6% m/m, marking the fourth consecutive rise, led by a 10.4% surge in diesel fuel, alongside gains in beef, veal, gas fuels, and jet fuel.
- Services prices rose 0.3% m/m, with over a third of the increase driven by a 5.7% jump in traveller accommodation services.
- Compared to the CPI data and Powell’s comments, market impact was muted, as key components of the release had softened.