India bonds edge up, supported by steady oil prices, halt to US-Iran strikes

Indian government bonds edged higher as steady crude oil prices at $71.90 per barrel and a US-Iran diplomatic truce eased inflation concerns, with the benchmark 10-year yield dipping to 6.7568%. Foreign investors net bought a record of almost $3 billion in Indian government bonds in June, supported by RBI incentives and tax cuts. Goldman Sachs raised its CY26 India GDP growth forecast by 30 basis points to 6.8%, while cutting headline inflation and current account deficit forecasts to 4.4% and 1.1% of GDP respectively.