---
title: "INDIA BONDS-India bonds fall as debt sale looms, oil risks weigh"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/283098853.md"
datetime: "2026-04-17T06:24:20.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/283098853.md)
  - [en](https://longbridge.com/en/news/283098853.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/283098853.md)
---

# INDIA BONDS-India bonds fall as debt sale looms, oil risks weigh

(Updates at market open)

By Khushi Malhotra

MUMBAI, April 17 (Reuters) - Indian government bonds drifted lower early on Friday ahead of a heavy debt sale, while firm oil prices kept inflation risks elevated, even after U.S. President Donald Trump said the Iran war could end soon.

India’s benchmark 6.48% 2035 bond yield (IN064835G=CC) was at 6.9056% as of 11:45 a.m. IST. It settled at 6.8884% on Thursday. Bond yields move inversely to prices.

New Delhi will sell 320 billion rupees ($3.44 billion) worth of 5-year and 40-year notes later in the day.

“Demand and risk appetite in the weekly auction will decide the direction of yields,” a private bank trader said.

Meanwhile, Trump expressed confidence that an agreement could soon be reached to end the war following a 10-day truce that went in to effect ​between Lebanon and Israel.

Still, benchmark Brent crude futures hovered near $100 a barrel as the Straight of Hormuz continued to be shuttered, choking off roughly one-fifth of the world’s oil supply.

Higher oil prices threaten to cloud import-dependent India’s inflation and growth outlook.

Rising U.S. Treasury yields also weighed on Indian bonds. The U.S. 10-year yield edged higher for a third day at 4.3193% during Asian hours.

Separately, India’s central bank has urged state-run oil refiners to curb spot dollar purchases and tap a special credit line for their foreign exchange needs, Reuters reported.

The rupee was up 0.6% at 92.66 per U.S. dollar. A stronger currency supports Indian bonds by easing inflation risks, reducing pressure on the central bank to keep rates elevated, and improving the appeal of debt for foreign investors.

### RATES

India’s overnight index swap rates surged, with a paying bias as U.S. and domestic yields rose.

The one-year OIS rate (INR1YMIBROIS=CC) was steady at 5.80% on Thursday, while the two-year swap rate (INR2YMIBROIS=CC) was at 6.02%. The liquid five-year (INR5YMIBROIS=CC) rate rose 5 bps to 6.42%. ($1 = 92.9860 Indian rupees)

### Related Stocks

- [IND.US](https://longbridge.com/en/quote/IND.US.md)
- [NFTY.US](https://longbridge.com/en/quote/NFTY.US.md)

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