Indian government bonds advanced early Monday as surging foreign inflows and stable oil prices blunted geopolitical worries re-ignited by a fresh burst of U.S.-Iran strikes over the long weekend.
Iran attacked U.S. bases in Kuwait and Bahrain Sunday shortly after President Donald Trump threatened that the Islamic Republic would cease to exist if it did not honor the interim agreement. Diplomacy prevailed later in the day, with both sides agreeing to halt hostilities and resume peace talks.
Brent crude futures steadied in Asian trade, at $71.90 per barrel. The U.S. 10-year Treasury yields also traded rangebound at 4.3744%.
India’s benchmark 10-year yield inched lower to 6.7568% by 11:45 a.m. IST, near Thursday’s close of 6.7690%. The 10-year yield has eased 28 basis points over the last five weeks.