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India bonds rally as oil below $100 calms inflation jitters

News Snapshot:

Indian government bonds gained on Tuesday after oil prices fell below $100 a barrel, retreating from recent peaks and tempering concerns over inflation and higher interest rates.India, which imports roughly 90% of its crude oil needs, is particularly exposed to swings in global oil prices, with elevated oil prices and a weak monsoon raising inflation concerns and expectations of a rate hike next month.The benchmark 6.94% 2036 bond yield fell 4 basis points to 7.0106%.Traders said a sustained move below 7% may prove difficult ahead of the Reserve Bank of India's rates decision in October. Bond yields move inversely to…

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