𝗕𝗼𝗻𝗱 𝗬𝗶𝗲𝗹𝗱𝘀 𝗜𝗻 𝗜𝗻𝗱𝗶𝗮 𝗛𝗶𝘁 𝗢𝗻𝗲-𝗠𝗼𝗻𝘁𝗵 𝗟𝗼𝘄 𝗗𝗲𝘀𝗽𝗶𝘁𝗲 𝗢𝗶𝗹 𝗦𝗵𝗼𝗰𝗸

Indian government bonds rose on Monday. Oil prices jumped due to Middle East tensions. Still, bond yields fell to a one-month low.

The yield on the benchmark 6.48% 2035 government bond dropped 2.4 basis points to 6.9532%. This marked its lowest level in one month.

The rally followed steps by the Reserve Bank of India on Friday. The RBI kept its key policy rate unchanged. It also announced measures to draw foreign investment into government securities.

Key RBI steps include:

Nomura analysts expect the FNCR (B) scheme to attract deposits worth 1% of GDP. This equals around $40 billion.

Last week, the Centre removed taxes on interest income and capital gains from government securities sales by foreign investors. This move also helped the rally.

India's benchmark 10-year bond yield fell for a third straight session. Still, gains were limited by rising US Treasury yields and higher oil prices.

Brent crude rose 4% to $96.34 a barrel during Asian trading. Israel struck Lebanon on Sunday. This hurt hopes for a broader de-escalation in the region.

The US 10-year Treasury yield rose 2 basis points to 4.55% in Asian trade.

India imports nearly 90% of its crude oil. This makes the economy sensitive to global energy price swings.

Overnight index swaps moved slightly higher. Caution over rising oil prices drove this shift.