INDIA BONDS-India bonds pause after slump as oil, Treasury risks linger

Indian government bond yields were little changed at 6.7670% on Thursday after a sharp 7 bps selloff in the prior session, pressured by Brent crude surging over 5% to $78.92 on fresh US strikes on Iran and the 10-year US Treasury yield climbing to 4.5792%. Foreign inflows continued to provide support, with overseas investors net buying 365 billion rupees (around $3.82 billion) of Indian government bonds under the Fully Accessible Route since the start of June, drawn by expectations of inclusion in Bloomberg's Global Aggregate Index. DBS and HSBC analysts viewed the selloff as transient, citing attractive post-spike valuations and sustained foreign demand.