Indian government bonds are set to open the week on a cautious note as investors digest renewed geopolitical friction between the United States and Iran.
The uncertainty surrounding the Strait of Hormuz, a critical global energy chokepoint, has shifted market focus back to oil price volatility, creating headwinds for fixed-income sentiment in Asia.
8533% on Friday, marking its fourth consecutive weekly decline in yields.
The benchmark 6.94% 2036 note is expected to trade within a tight range of 6.823% to 6.88% in early session activity.
This comes after the instrument closed at 6.8533% on Friday, marking its fourth consecutive weekly decline in yields.
The sustained downward pressure on yields over the past month reflects a broader flight-to-safety dynamic, though the current week’s outlook is clouded by the risk of supply disruptions.
Tensions escalated following the first round of peace talks, which were marred by Iran’s decision to shut a crucial transit point.