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India bonds to open weaker as US threatens Iran sanctions
Indian government bonds are expected to open weaker this week as oil prices remain elevated ahead of potential US sanctions on Iran, a trader said.
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Indian government bonds are likely to start the holiday-truncated week on a cautious note, with oil prices elevated ahead of a potential US announcement on additional sanctions against Iran. The yield on the benchmark 6.94% 2036 bond is expected to trade between 6.83% and 6.88% on Monday, a trader at a private bank said. The bond closed at 6.8495% on Friday after posting its biggest weekly rise of the financial year. Indian debt markets are shut on Wednesday for a local holiday.
“We are in for another week, which is expected to be dominated by moves in oil prices, with hardly any triggers on the local front,” the trader said.
US Treasury Secretary Scott Bessent is set to brief media later in the day and has threatened to impose “the toughest sanctions in history” on Iran. President Donald Trump has also threatened to impose sanctions on Tehran’s trading partners. Iran has condemned the plans even as President Masoud Pezeshkian called for a diplomatic solution.