Indian government bonds fell in early trade on Monday, tracking a selloff in U.S. Treasuries as escalating U.S.-Iran tensions lifted oil prices, though hopes of inclusion in Bloomberg's flagship index helped limit losses.
The benchmark 6.94% 2036 bond yield was at 6.7340% as of 10:25 a.m. IST. It had eased nearly 4 basis points to 6.7139% on Friday, marking the bond's best session in a week. Bond yields move inversely to prices.