Indian government bonds trade cautiously as oil slips below $80 and U.S.-Iran tensions linger

Indian government bonds traded cautiously in early Monday dealing as easing oil prices were tempered by lingering concerns over U.S.-Iran tensions. Oil slipping below $80 a barrel offered some relief for import costs and inflation pressures. Traders also stayed alert to El Nino-related inflation risks and broader moves in global yields. Markets are awaiting a decision on whether India will be included in a major global bond index, which could lift foreign investment inflows.