Indian government bonds

The Indian rupee and government bonds are seen as vulnerable to renewed pressure as hopes for a diplomatic resolution over Iran's nuclear programme fade, according to a Reuters report. Weakening diplomacy raises the risk of higher oil prices, which would widen India's import bill, weigh on the currency and push bond yields up as inflation concerns mount.

India's rupee and government bonds are seen coming under pressure as diplomatic efforts with Iran lose momentum, raising fears of higher oil prices. Fading hopes for a diplomatic breakthrough could lift crude costs, straining India's import bill and weakening its currency and debt markets.