India bonds pause rally as large debt supply, Fed decision loom

Synopsis Indian government bonds ended the day unchanged on Tuesday after a recent rally, as an influx of ten-year notes and the Federal Reserve’s policy decision dampened risk appetite. Market participants kept a close eye on oil prices and U.S. Treasury yields for guidance. There is an expectation of a rate increase in September from the Federal Reserve, with geopolitical tensions lingering due to Oman’s proposed fees in the Hormuz Strait. Indian government bonds ended flat on Tuesday after the previous session’s sharp rally, as a hefty supply of 10-year notes later this week and the looming Federal Reserve policy…