Indian bonds flattish as oil spike offset by falling Treasury yields

Indian government bond prices were broadly steady early Friday as investors weighed rising crude against lower US Treasury yields and subdued demand ahead of fresh debt issuance, Business Recorder reported. The benchmark 6.94% 2036 bond yield stood at 7.4778% at 10:00 a.m. IST, compared with 7.4596% at the prior close.

Brent climbed above $114 a barrel, its highest mark in five months, after Houthi attacks on Saudi Arabia raised concerns about energy supply disruptions. India imports nearly 90% of its oil needs, so prolonged high prices can increase import costs and pressure its currency, inflation outlook and public finances. Meanwhile, the US 10-year Treasury yield fell below 5% after weak economic data and a stock-market decline. New Delhi planned to raise 330 billion rupees ($3.48 billion) through bond sales later Friday, while the central bank had recently lifted its repo rate and adopted a calibrated-tightening stance.