India Bond Market Slips as Crude Prices Hover Near $90

India's bond market slipped on August 11th as Brent crude prices hovered near $90 per barrel. This came after U.S.-Iran peace talks stalled, causing oil prices to surge. The benchmark 6.94% 2036 Indian bond yield rose by 1.5 basis points to 6.7791%, its biggest one-day increase in over a week.

Investors were awaiting July inflation data for clues on the Reserve Bank of India's rate path. Rising oil prices could lead to increased inflation and strain the fiscal balance, current account, and currency in India, which is the world's third-largest crude importer.

Some value buying emerged in the second half of the session as investors picked up longer-dated bonds when the yield curve steepened. Foreign investors bought nearly 17 billion rupees ($178 million) worth of the 7.34% 2064 bond this week, according to CCIL data.