Government bond yields: Government bond yields are anticipated to remain stable as the financial year approaches its end, with traders exercising caution in taking crucial positions. 

The rupee's recovery has contributed to a calmer market sentiment.

The benchmark 10-year yield is projected to fluctuate within a narrow range, reflecting the cautious stance of traders. 

Market activity is expected to be subdued as India observes public holidays on Friday.

Traders are already positioned for the fiscal year-end, suggesting limited scope for major market movements unless there are significant shifts in currency or Treasury yields.

The rupee is forecasted to see a slight appreciation, building on its recent recovery from a record low. The rebound had previously triggered a sell-off in local debt.

In the global market, US yields remained steady, with traders grappling with uncertainties regarding the Federal Reserve's rate cut decisions for 2024.

Attention in India is now turning towards the borrowing calendar for the next financial year, which is expected to be outlined later this week. 

The government aims to gross borrow a slightly lower amount compared to the current fiscal year.

Traders will also monitor borrowing activities by states, which have seen a major increase this fiscal year and are expected to continue at a record pace in the upcoming financial year.

(With Reuters Inputs)