India bonds walk tightrope on steady oil, shaky US-Iran truce

Indian government bonds traded cautiously as falling oil prices below $80 a barrel were offset by concerns over US-Iran tensions, the El Nino threat to monsoon and inflation, and hawkish US Fed commentary. The benchmark 10-year yield hovered at 6.8533%, having eased nearly 20 basis points over four weeks tracking the slide in crude. Foreign investors have net bought 213.5 billion rupees ($2.26 billion) in Indian debt this month on the back of RBI's June 5 measures, while traders await a decision on India's inclusion in the Bloomberg Global Aggregate Index.