Expectations on stance change were low, and this was a positive surprise for the market. The RBI MPC probably drew comfort from low inflation readings in past few months and soft core inflation. Though inflation may go higher in next few readings, overall RBI MPC noted overall inflation readings may trend down later. The overall policy was positive for markets with yields down and curve steepening and short term bonds rallied more on change in stance and expected rate cut likely in next policy meet. With induction of Indian FAR G-Secs in FTSE Emerging Market Bond Index, markets are likely to remain buoyant in near term.