Key facts
- Indian government bonds closed higher on Thursday, with the benchmark 6.94% 2036 bond yield falling to 6.9240%.
- Lower oil prices helped offset concerns over renewed U.S.-Iran conflict escalation.
- Measures announced by the government and Reserve Bank of India aimed to attract foreign inflows.
- Previously, Indian bonds had fallen due to Middle East war escalation fears and profit-taking.
- Gold prices had also fallen over 3% amid conflict fears and rate hike concerns.
Indian government bonds ended higher on Thursday, recovering from earlier declines driven by Middle East conflict fears and rising oil prices. The benchmark 6.94% 2036 bond yield closed at 6.9240%, down from Wednesday's 6.9431%, indicating a price increase.