Indian government bond traders are positioning for a bearish start to the session, with the benchmark 6.94% 2036 bond yield expected to trade in the 6.80%-6.84% range.
The instrument closed at 6.8132% on Thursday, setting the stage for a session focused on fresh debt supply rather than the recent rally.
This shift in sentiment marks a reversal from earlier in the week, when traders extended gains in early deals.
Those moves were driven by a combination of renewed foreign investor interest and improving monsoon conditions, which had bolstered confidence in the domestic economic outlook.
The current bearish bias reflects the immediate pressure of new issuance, which often weighs on prices and pushes yields higher as investors adjust their portfolios.
Traders are closely monitoring how the market absorbs this fresh supply, with the 6.80% level serving as a key support threshold.