India bonds dragged by rise in oil prices, Treasury yields on fresh US-Iran hostilities

Indian government bonds declined in early trade on Wednesday as rising oil prices and US Treasury yields weighed on sentiment after fresh US-Iran hostilities. The benchmark 10-year bond yield rose to 6.7246% from the previous close of 6.6958%, while the US 10-year Treasury yield climbed about 7 bps to around 4.55%. Brent crude stayed above $75 per barrel following US military strikes on Iran. However, strong foreign inflows (net debt purchases of about 362 billion rupees since June) and prospects of Bloomberg Global Aggregate Index inclusion continue to support Indian bonds.