Aditya Bagree of Citi India states investors in India's bond market await clarity on the government's fiscal consolidation path for the next rally.

Citi India executive Aditya Bagree says investors in India's bond market are waiting for clarity on the government's fiscal consolidation path before propelling the next rally. The benchmark bond yield is currently at 6.99%, and Bagree expects a 10-year benchmark drop to 6.80-6.85% once fiscal stability is assured. Traders will also watch for potential rate cuts from the Reserve Bank of India and the Federal Reserve.