Indian government bond yields showed no clear directional bias on Tuesday, with the benchmark 6.94% 2036 note ending the session virtually flat.
The yield settled at 6.7563%, a marginal shift from Tuesday’s close of 6.7501%, reflecting a market that remains in wait-and-see mode.
Traders are balancing conflicting pressures, including lingering geopolitical concerns and expectations surrounding potential inclusion in global bond indices.
The lack of conviction has kept the curve compressed, with participants hesitant to take large positions without a clearer macroeconomic signal or policy guidance.
This consolidation follows a similar pattern on Monday, when the same benchmark note closed at 6.8473% after trading in a narrow range.
Indian equity benchmarks also displayed minimal movement, with the BSE Sensex edging slightly higher and the Nifty 50 holding steady, underscoring the broader risk-off sentiment across asset classes.