India bonds rise as softer oil; Treasury gains offset debt sale caution

Indian government bonds rose on Friday as softer crude oil prices (Brent down over 2 percent to about 76 dollars a barrel) and overnight declines in US Treasury yields supported sentiment. Foreign investors purchased a net 15 billion rupees of bonds on Thursday, taking cumulative inflows to nearly 4 billion dollars since early June, aided by expectations of India's inclusion in Bloomberg's Global Aggregate Index. The benchmark 6.94 percent 2036 bond yield slipped 2 basis points to 6.7348 percent, while the government prepares to raise 320 billion rupees through a debt auction including a new 40-year bond.