(Updates at market open) By Khushi Malhotra MUMBAI, Oct 29 (Reuters) – Indian government bonds inched up on Wednesday ahead of U.S. Federal Reserve's policy decision, while subdued trading activity confined bonds to a narrow band. The yield on the benchmark 10-year note was at 6.5207%, as of 10:30 a.m. IST. It closed at 6.5357% on Tuesday. Bond yields rise when prices fall. Traders are keenly awaiting the Fed's policy outcome, due after Indian market hours, and Chair Jerome Powell's address to gauge the probability of further rate cuts. Market participants have priced in a 25-basis-point cut and see a 91% likelihood of a December rate cut, according to CME FedWatch Tool. A U.S.-China trade deal and lack of economic indicators amid a U.S. government shutdown can still put the rate-easing tr

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