India bond rally pauses ahead of state debt sale

Indian government bonds traded range-bound, pausing a three-session rally as traders awaited a state-debt auction of 213.50 billion rupees. The broader backdrop remains supportive, with foreign investors buying over 351 billion rupees of bonds since the RBI's latest policy decision, Brent crude consolidating near pre-war levels at $72.50 easing fiscal pressures, and the monsoon deficit narrowing to 24 percent below average from 43.1 percent on June 28. Traders are also watching for Bloomberg's expected decision this month on Indian bonds' inclusion in the Global Aggregate Index.