On Monday, Indian government bonds experienced a modest increase amid a turbulent trading environment, driven by elevated crude oil prices and uncertainty regarding a ceasefire set to expire this week. The yield on India's benchmark 6.48% 2035 bond settled at 6.8901%, down from 6.9049% on Friday. This shift reflects the inverse relationship between bond prices and yields. Brent crude oil futures surged to $94.77 per barrel, a 4.82% increase, following the U.S. seizure of an Iranian cargo ship, which has raised concerns about the stability of a fragile truce. With crude oil imports accounting for about one-fourth of India's total imports, the country remains vulnerable to fluctuations in global oil prices. Traders are still hopeful for a resolution to the ongoing conflict, leading to late-session buying activity, according to Debendra Kumar Dash, senior vice president of treasury at AU Small Finance Bank. He suggested that shorter-tenor notes may offer better risk-adjusted returns given the current market conditions. Additionally, India's banking system liquidity surplus widened to 4.28 trillion rupees as of April 19, marking levels not seen in four years. Traders are also awaiting fresh debt supply, with Indian states set to borrow 169 billion rupees through bond sales on Tuesday.