Indian government bonds saw their rally pause on Wednesday. Oil prices stabilized, and the US Federal Reserve's upcoming policy decision kept investors cautious. The benchmark 10-year bond yield hovered near a 12-week low. Traders are now awaiting the Fed's verdict. Hawkish guidance could impact foreign investment in Indian bonds. Overseas investors have recently poured over $2 billion into domestic bonds.

The yield on the benchmark 6.94% 2036 note was at 6.8563% as of 10:30 am, after closing at 6.8651% on Tuesday.

Indian government bonds saw their rally pause on Wednesday. Oil prices stabilized, and the US Federal Reserve's upcoming policy decision kept investors cautious. The benchmark…