Indian government bonds could see some buying interest in early deals on Thursday, tracking a drop in US Treasury yields, but any such move is likely to be limited as underlying sentiment remains cautious after the Reserve Bank of India's hawkish commentary earlier this week.
The benchmark 6.94% 2036 bond yield may trade between 7.37% and 7.42%, according to a trader with a primary dealership, after closing at 7.3999% in the previous session. Bond yields rise when prices fall.
