Adding to this, Kunal Shah, CFA, Fund Manager - Debt, Kotak Mahindra Life Insurance, said, “From the bond market perspective status quo was priced in but the sharp revision in inflation projection has come as a surprise, yields have dropped 10 bps post policy to 7.45 per cent. The downward revision in projection appears tad sharp, especially when MPC sees no reason to soften to a neutral stance. FY 2019 will be the second year of sub 4 per cent inflation with H1 2020 projections at 4 per cent within the target mandate. Bond yields should be trading with softening bias supported by high real rates and continual commitment by RBI to conduct more OMO purchases."