India bonds fall as Middle East escalation drives oil above $90

Indian government bonds fell as escalating Middle East tensions pushed Brent crude above 90 dollars per barrel, raising inflation and import bill concerns for India. The benchmark 10-year yield settled nearly 2 basis points higher at 6.7938 percent, with the yield curve steepening as oil risks weighed on longer-dated bonds. RBI's FCNR deposit scheme mobilised 20.72 billion dollars through July 17, providing some support to the short end, though state debt auction cut-off yields came in sharply above market expectations.