Indian government bonds ended flat on Tuesday, halting a three-session rally that had seen the benchmark 10-year yield fall by 7 basis points.
The benchmark 6.94% 2036 bond yield erased its early decline to close at 6.7774%, signaling a pause in the recent downward pressure on borrowing costs.
Market participants are holding back on new positions as they navigate a confluence of domestic supply risks and global policy uncertainty.
The consolidation comes as the Indian government prepares to issue a hefty supply of 10-year notes, a factor that typically caps upside for bond prices.
Traders are also bracing for the outcome of the Federal Reserve's two-day policy meeting, which begins later this week.
With the Fed widely expected to hold rates steady, the focus has shifted to the central bank's forward guidance and any signals regarding the timing of future cuts.