India bonds-India 10-year bond yield clings to 6.85%; traders eye oil moves amid sanctions threat
TLT•Sanctions threat keeps crude in focus
The U.S. Treasury Secretary is scheduled to brief media later in the day after warning that Washington could impose "the toughest sanctions in history" on Iran. President Donald Trump has also threatened sanctions against countries that continue to trade with Tehran.
Iran has denounced the planned U.S. measures, while calling out for a diplomatic resolution.
The benchmark Brent crude held above $92 a barrel, heightening concerns for major oil importers such as India.
Elevated crude prices could stoke inflation, widen the current account deficit and add pressure on government finances.
RBI minutes and swaps show rate pressures remain in view
The minutes of the Reserve Bank of India's August policy meeting published last week showed that policymakers remain open to raising interest rates if inflationary pressures emerge and become more broad-based.
Governor Sanjay Malhotra said signs of such spillovers could justify policy tightening, while Deputy Governor Poonam Gupta said the case for a rate hike could develop later this year.
RATES
India's overnight indexed swap rates did not witness any major activity after posting a massive spike in the previous week.
The one-year INR1YMIBROIS=CC and the two-year INR2YMIBROIS=CC swaps were not yet traded rate, after ending at 5.9025% and 6.1250% on Friday, while the five-year INR5YMIBROIS=CC rate was steady at 6.43%.
