CSBBANK.NSECSB Bank Ltd.

MUMBAI: Indian bonds surged on Monday, with the 10-year yield falling the most in nearly 15 weeks, on hopes of an end to the Middle East war after the U.S. and Iran received the framework for a plan to end their five-week-old conflict. U.S. President Donald Trump had earlier threatened to unleash “hell” on Tehran unless it agrees by the end of Tuesday to a deal that would allow traffic to resume through the critical energy chokepoint. Iran has ruled out any immediate reopening of the Strait of Hormuz. India’s benchmark 6.48% 2035 bond yield eased about 9 basis points to 7.0458%, its biggest single-day drop since December 24. The yield fell for the first time after advancing for the previous 12 sessions. Bond yields move inversely to prices. The market also cheered likely purchases by the Reserve Bank of India last week and a slimmer-than-expected state borrowing calendar. Clearing house data showed a cohort of investors that includes the RBI and other long-term investors net bought 96 billion rupees ($1.03 billion) of bonds on Thursday.