<p><strong>R. K. Gurumurthy, Head Treasury, Lakshmi Vilas Bank</strong></p>.<p>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. </p>.<p>Bond yields were expected to test 6.50% and today's low was close to that. Bias remains for softer yields this quarter.</p>.<p><em>The author is the Head Treasury, Lakshmi Vilas Bank.</em></p>
<p><strong>R. K. Gurumurthy, Head Treasury, Lakshmi Vilas Bank</strong></p>.<p>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. </p>.<p>Bond yields were expected to test 6.50% and today's low was close to that. Bias remains for softer yields this quarter.</p>.<p><em>The author is the Head Treasury, Lakshmi Vilas Bank.</em></p>