Value buyers lift India bonds; US-Iran war jitters, oil risks weigh

The benchmark 6.94% 2036 bond yield fell one basis point to 6.7517% as foreign banks returned as buyers after Wednesday's selloff. Foreign lenders purchased 402 billion rupees of Indian government bonds in June, the biggest monthly inflow in a year, with overseas investors buying about $3.82 billion of Fully Accessible Route bonds since the start of June on hopes of Bloomberg index inclusion. Gains were capped by US-Iran military escalation that pushed Brent crude up more than 6% to about $78 per barrel and lifted US Treasury yields by around 6 basis points.