Indian 10-year yield dips to 6.75% as Brent nears $85
Business
Indian bonds opened a bit stronger this Thursday, with the main 10-year yield at 6.75%, slightly down from last session.
This move followed Brent crude oil prices calming near $85 per barrel, but investors are still watching closely since expensive oil can push up inflation and impact bond returns.
Oil volatility tests Indian bonds
Tensions in the Middle East, like US strikes on Iran and a new naval blockade, are making global oil prices unpredictable, which keeps investors on edge.
On the bright side, cooling US inflation has helped steady things a bit for India's bond market.
Plus, nearly $5 billion in foreign investment has flowed into Indian bonds this year, offering some extra support despite ongoing worries about high crude prices.