India bonds steady as dicey Iran truce, liquidity crunch curb appetite

Indian government bonds were steady as the benchmark 6.94% 2036 yield closed at 6.8473%, down from 6.8533% on Friday, with traders cautious on lingering U.S.-Iran tensions and tight banking liquidity near neutral levels due to tax outflows. Foreign investors net bought 213.5 billion rupees ($2.26 billion) of government bonds this month, a 15-month high, though rising US Treasury yields (4.49%, up 4 bps) pose a risk. Brent crude slipped below $80 a barrel, and traders are awaiting Bloomberg's decision this month on including Indian bonds in its Global Aggregate Index.