New Delhi, Jan. 31 -- Indian bonds, in terms of yields, are at attractive levels at this point in time, making them a investment option. Any potential downside from current levels is expected to be limited in scope.

"Bond yields in the January-March 2026 quarter are likely to remain range-bound with a clear upward bias, rather than trend decisively lower," says Tushar Sharma, Co-Founder at Bondbay.

While inflation remains benign and the RBI has taken visible steps to manage liquidity through OMOs, FX swaps, and short-term operations, the bond market is currently responding more to fiscal dynamics and supply conditions than to the monetary stance alone.

The rebound of the 10-year G-sec yield above 6.6% reflects this reality. Even as the...