Indian government bonds rally as Brent falls amid Iran talks
Business
Indian government bonds rallied early on Monday after global crude oil prices dropped, as Iranian officials and Qatari mediators held a third straight day of talks aimed at ending the US-Israeli war on Iran.
With Brent crude falling 3.2% to $109.75 a barrel, India, one of the world's biggest oil importers, could see some relief from inflation concerns and budget pressures.
India yields slip rupee edges up
Lower oil prices pushed bond yields down (the 2036 benchmark slipped to 7.3612%), while the rupee edged up slightly against the US dollar.
Traders are now watching the US midterm elections, since any peace deal could mean fewer interest rate hikes from India's central bank, which has been bracing for inflation near 6% in the third quarter.