Global markets were taken by surprise after US announced tariffs on Mexican imports. Disappointing China's manufacturing data too added to global concerns. Global stocks and yields also fell. Oil extended the decline and is currently down by (-) 10% (US$ 61/bbl). Indian yields fell to a 19-month low. Bond yields are pricing-in a rate cut by RBI. While lower GDP growth at 5.8% is a worry, government's stimulus has already been expanded to Rs 870bn from Rs 750bn. RBI may look at monsoon and Budget before taking its view....