{"id":643,"date":"2026-05-11T18:50:06","date_gmt":"2026-05-11T18:50:06","guid":{"rendered":"https:\/\/dailypakistannews.com\/?p=643"},"modified":"2026-05-11T18:50:06","modified_gmt":"2026-05-11T18:50:06","slug":"oil-led-inflation-fears-sap-demand-for-indian-bonds","status":"publish","type":"post","link":"https:\/\/dailypakistannews.com\/?p=643","title":{"rendered":"Oil-led inflation fears sap demand for Indian bonds"},"content":{"rendered":"<p><strong>MUMBAI: Indian government bonds fell on Monday, as stalled U.S.-Iran peace talks sent oil prices higher, fuelling concerns over India\u2019s inflation and fiscal outlook, while traders positioned for a potentially firmer April inflation data.<\/strong><\/p>\n<p>The benchmark 6.48% 2035 bond yield IN064835G=CC settled 5.1 basis points higher at 7.0317%, extending gains after its sharpest rise in a month on Friday. The yield on the new 10-year 6.94% 2036 bond closed up 4.1 bps at 6.9814%.<\/p>\n<p>President Donald Trump squashed Iran\u2019s counter to a U.S. peace proposal on Monday, raising concerns that the 10-week-old conflict will drag on.<\/p>\n<p>Brent crude LCOc1 rose 2.6% to $104 a barrel in Asian trading.<\/p>\n<p>Separately, Prime Minister Narendra Modi on Sunday urged Indians to conserve fuel, resume work-from-home, limit non-essential overseas travel, cut cooking oil consumption and reduce fertiliser use as surging global energy prices pressure India\u2019s foreign exchange reserves.<\/p>\n<p>His remarks reinforced fears that energy costs and supply shortages could feed into broader inflation, traders said.<\/p>\n<p>\u201cGeneral thought process was prices would increase after elections, so we will wait and watch,\u201d Kruti Chheta, Mumbai-based fund manager and fixed income analyst at Mirae Asset Investment Managers (India), said.<\/p>\n<p>India\u2019s inflation data for April, due on Tuesday, likely moved closer to the central bank\u2019s 4% target from 3.40% in March, a Reuters poll of economists showed.<\/p>\n<p>With energy and El Nino shocks, we forecast FY27 inflation at 5.6%, gross domestic product at 6%, and two rate hikes over the fourth quarter of 2026 and first quarter of 2027, economists at HSBC said in a note.<\/p>\n<p><strong>Rates<\/strong><\/p>\n<p>India\u2019s overnight index swap rates surged in line with bond yields.<\/p>\n<p>The one-year swap rate rose 7.5 bps to 5.97%, while the two-year swap rate jumped 9 bps to 6.22%. The most liquid five-year rate was at 6.62%, up 6.25 bps.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>MUMBAI: Indian government bonds fell on Monday, as stalled U.S.-Iran peace talks sent oil prices higher, fuelling concerns over India\u2019s inflation and fiscal outlook, while traders positioned for a potentially firmer April inflation data. The benchmark 6.48% 2035 bond yield IN064835G=CC settled 5.1 basis points higher at 7.0317%, extending gains after its sharpest rise in [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":644,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-643","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pakistan-news"],"_links":{"self":[{"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/posts\/643","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=643"}],"version-history":[{"count":0,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/posts\/643\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/media\/644"}],"wp:attachment":[{"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}