Foreign inflows, lower oil prices help Indian bond traders look past US Treasury selloff

Foreign investors have net bought 324 billion rupees ($3.40 billion) of Indian bonds since June, driven by tax relief measures, a steadier rupee, and anticipated inclusion in Bloomberg's Global Aggregate Index, with Goldman Sachs projecting an additional $10 billion in flows in 2026. Indian government bonds withstood a US Treasury selloff as the benchmark 6.94% 2036 bond yield eased to 6.7207%, supported by Brent crude near $70 per barrel and an improving inflation outlook. Separately, Shapoorji Pallonji Group is launching a 25,500 crore rupee bond issue backed by its 18.37% stake in Tata Sons.