India bonds muted as sparse US-Iran deal details cap oil-led gains

Indian government bond yields ended marginally lower at 6.8651% on the benchmark 6.94% 2036 note, consolidating after a recent rally as traders awaited fine print of a tentative US-Iran deal. Brent crude hovered near $80.99 a barrel, a three-month low, supported by expectations that a deal could reopen the Strait of Hormuz, though lack of public details and no permanent truce kept sentiment cautious. Overnight index swap rates also fell, with the one-year rate down 3.25 bps to 5.8925%, while liquidity remained tight due to advance tax outflows.