Indian government bonds are likely to open the week on a quiet note, as focus turns to the central bank's Friday monetary policy decision.
Yield on the benchmark 6.48% 2035 note is expected to trade in the 6.97% to 7.02% range.
"If we do not see any major moves in global factors, the action will be dominated by the expectations built up in the run up to the monetary policy," a trader said.
Nearly 80% of economists polled expect the repo rate to remain unchanged, while a minority including Standard Chartered and Capital Economics call for a rate hike.
The central bank is also expected to update its inflation and growth forecasts amid spillover from the Middle East war.
Crude oil prices and a weakening rupee have raised the odds of an earlier-than-expected rate hike.
India's overnight index swap rates rose in May, with the one-year swap ending at 6.0950% and the two-year at 6.29%.
