India bond yields slide as oil stays high despite US Iran ceasefire extension

Ceasefire extended, but Iran oil supply remains squeezed

Indian government bonds slipped as oil prices stayed elevated, keeping inflation and fiscal risks in focus. Investors said the US move to extend an indefinite ceasefire with Iran may not bring near-term relief because the US Navy continues to obstruct Iranian maritime trade. The result is pressure on India’s bond yields and a more uncertain outlook for government finances.