Indian bonds rise on steady oil, easing US rate-hike fears

Indian government bonds rose for a second consecutive session as crude oil held below $85 a barrel and softer US economic data eased Federal Reserve rate-hike expectations, pulling down the benchmark 6.94% 2036 bond yield to 6.7478%, down 2.5 basis points. Market participants are closely watching Bloomberg's expected decision this month on adding Indian debt to its Global Aggregate Index, which could unlock significant foreign investment inflows. Foreign investors have bought over $4.2 billion of Fully Accessible Route bonds since June 1, while economists have scaled back expectations of a Reserve Bank of India rate hike amid improving inflation outlook.