Indian government bonds turned higher after a weak opening ​on Monday, with the recent spike in benchmark yields attracting ‌value buyers.

The benchmark Indian 6.48% 2035 bond ​yield was at 6.9902%, as of 10:05 ⁠a.m. IST, after closing at 7.0148% on Thursday.

Bond yields move inversely to prices. Indian markets were closed on Friday for a ‌public holiday.

Early election result trend in the eastern Indian state of West Bengal showed Prime ‌Minister Narendra Modi's Bharatiya Janata Party-led coalition in ‌the ⁠lead. The state is one of the few ⁠in the country that Modi's party had failed to form a government in so far.

Three other states and a union territory ​are also announcing results of ‌the elections held last month. "After the initial jitters, bulls have returned with some confidence as oil, even though elevated, has stabilised, while election results seem ‌to be favouring the ruling party (at the federal government)," ​trader with a state-run bank said.

Benchmark Brent crude was around $109 per barrel, after hitting $125 ⁠a barrel last week.

Oil eased after President Donald Trump said he would begin an effort to free up ‌ships stranded in the Strait of Hormuz, even as there was no visible progress in peace talks with Iran.

Though there has been a ceasefire since early April, Iran has kept shipping through the strait, a conduit for about 20% of global oil supplies, ‌largely shut.

The sharp rise in oil prices is of particular ​concern for India, which imports nearly 90% of its crude needs, as higher energy costs could ⁠inflate the import bill and add pressure to inflation and ⁠fiscal deficit.

RATES

India's overnight index swap rates eased slightly in line with government bond yields.

The one-year ‌OIS rate was at 5.97%, while the two-year swap rate was not yet traded. The five-year OIS ​rate was at 6.58%.

Published on May 4, 2026