Indian bonds have been stuck in listless trading in recent weeks, with analysts saying only strong dovish signals from the Reserve Bank of India this week may help rekindle bullish sentiment.
A 25 basis-point interest-rate cut, combined with clear guidance on further easing, may drive the 10-year yield lower by as much as 30 basis points, according to the Union Bank of India. PGIM India Asset Management sees room for a 10 basis-point decline on dovish commentary, while a lack of action risks triggering a selloff.