Indian bonds gain on short covering ahead of Fed decision

Indian government bonds posted gains as crude oil prices fell from recent peaks. Traders closed short positions in anticipation of the Federal Reserve's policy decision expected later today.

Global debt markets stabilized following Saudi Arabia's announcement of additional oil supplies through Oman. Domestically, bond yields eased as Overnight Index Swap rates tracked offshore market movements, reflecting investor sentiment ahead of major central bank announcements.

The Reserve Bank of India is expected to tighten monetary policy next month amid persistent inflationary pressures.