New Delhi, Oct. 13 -- The yields on long-term government bonds have become less responsive to inflation expectations since September 2022, whereas the short-term rates have become more responsive, according to a working paper from the National Institute of Public Finance and Policy (NIPFP), which has been reviewed by Mint.

The study, titled Artificial Intelligence and the Indian Sovereign Yield Curve: Empirical Evidence in Times of Macroeconomic Turmoil, analysed monthly data from 2000 to 2025 to examine whether AI adoption has changed the factors influencing government bond yields.

The study notes that this change could be due to the increasing use of artificial intelligence (AI) tools, which can assist regulators and policymakers in d...