R. K. Gurumurthy, Head Treasury, Lakshmi Vilas Bank

Fiscal deficit and gross borrowings are in line with pre-budget expectations. Additionally some part of borrowings within the gross borrowings is estimated to be raised overseas. So pressure on domestic liquidity is that much less. Indian rupee can gain a bit on the back of this development. However most of today's reactions could reverse as timing is key. 

Bond yields were expected to test 6.50% and today's low was close to that. Bias remains for softer yields this quarter.

The author is the Head Treasury, Lakshmi Vilas Bank.