India government bond yields likely dip amid US Iran tensions
India's government bond yields are expected to dip slightly on Monday, thanks to renewed tensions between the US and Iran.
Oil prices have bounced back over 6% after a sharp fall on Friday, making the bond market extra jumpy.
A private bank trader shared that yields could move between 6.88% and 6.94%, down from Friday's close of 6.9049%.
Strait of Hormuz disruptions hit India
The conflict is causing big disruptions in global energy supplies, especially oil shipments through the Strait of Hormuz, which is tough for India since India relies heavily on energy imports.
Since fighting picked up on February 28, both bond yields and the rupee have taken a hit, while overnight index swap rates keep climbing.
All this adds up to more economic strain for India as global tensions continue.