remained pretty volatile in the past and given what the opec plus group is trying to do with regards to raising oil prices this is something that market participants are keenly watching at the same time we are all aware that the global economy is going through a little bit of a slow patch however a slowing global economy will reduce the demand for oil though the chinese economy is now gradually improving so we have the push and pull from both sides which is going to be interesting to watch as well as their impact on oil price going forward but we would believe that given india is able to buy crude oil from russia at a discounted price and there are other resources as well crude oil prices should remain below the expectations second thing is the food price right now food prices remain very important for us given their weight in the inflation index is 4045 currently we are seeing a lot of volatility coming in the food basket we look at the milk price wheat price some of the pulses and protein prices and we can see that they have remained pretty volatile and this is something that we will have to keep an eye on particularly at a time where weatherrelated vagaries are keeping food prices volatile these are the two main aspects which are likely to play an important role going forward on the trajectory of the inflation and this is something that we will have to watch and the reserve bank of india and mpc are keeping their fingers crossed with regards to expecting a normal monsoon and lower negative impact because of the el nino and energy prices remaining in the check these are the three things we will be watching in case of any significant deviation rbi has kept the door open for a potential change in the monetary policy down the roadwhat do the yields indicatecurrently the market has reacted in a kneejerk manner their yields have declined but as the dust settles going forward we do expect the yield curve to start bull steepening that means shortterm rates will probably fall more faster in terms of basis point as compared to longterm yields now over here at the short end we know that the oneyear tbill was close to about 725 based on the expectation that the repo rate will probably be 675 or even higher down the road now it is going to get unwound so we do expect shortterm yields to gradually trend lower on the long end given that in the first half the borrowing programme has increased the amount of auction for 15year plus portion of the yield curve and given the recent changes in the tax law if it is going to make a material impact on the demand of the long end of the yield curve we could probably see the long end of the yield curve remaining a little stickier whereas the