New Delhi, Aug. 14 -- Indian government bonds traded in a narrow range on Thursday, August 14, as market participants awaited the scheduled debt auction for signals on the future trajectory of yields.

According to a Reuters report, the benchmark 10-year bond yield stood at 6.4826% at 10:00 a.m., which is marginally higher than Wednesday's close of 6.4811%. The government aims to raise Rs.28,000 crore ($3.20 billion) through the sale of a 5-year bond and a new 30-year security.

Traders stated that the auction will be closely monitored as a test of appetite for long-term notes.

"Pre-policy, we had seen strong participation from banks in the longer end. If that repeats today, government securities should sustain current levels," a fund ma...