Indian government bonds are set for a quiet session as market participants look to the weekly debt auction for clues on investor appetite.
The benchmark 6.94% 2036 note is expected to trade within a tight band between 6.72% and 6.76%, according to a trader at a private bank.
This narrow range suggests limited directional conviction ahead of the supply event.
The market's cautious stance reflects a wait-and-see approach.
With yields having eased significantly in June as geopolitical tensions cooled, traders are now focused on whether current levels offer sufficient value to absorb new issuance.
The upcoming auction will serve as a key test of demand at these prices.