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India bonds pare gains as oil spike tames FCNR boost

Early Thursday trading saw Indian government bonds lose their initial gains as stronger dollar inflows were overshadowed by soaring oil prices. Traders covering short positions led to better performance in shorter maturities. Abundant liquidity helped reduce overnight indexed swap rates, but the spike in oil prices heightened concerns about India's inflation trajectory and fiscal integrity.

3 Sep 2026 5:46 pm