Indian government bonds edged higher early on Thursday, building on Wednesday's sharp rally after the central bank's dovish hold, though investors remained cautious ahead of Friday's auction.
The benchmark 6.94% 2036 bond yield was at 6.7588% at 11:10 a.m. IST, from 6.7722% at Wednesday's close. It fell nearly 5 basis points on Wednesday to its lowest level in three weeks.