Rahul Goswami, Chief Investment Officer at Franklin Templeton Asset Management in India, emphasizes that long-term bonds are currently inexpensive, providing a lucrative opportunity for patient investors. Following the recent cessation of the US-Iran ceasefire, oil prices are expected to rise, which could have significant macroeconomic implications, particularly for inflation and the current account deficit. The Reserve Bank of India's (RBI) inflation forecasts assume crude oil prices around $85 per barrel, but sustained higher prices could prompt the RBI to adopt a more hawkish monetary policy stance. Currently, the fixed income market is pricing in a potential 100-basis-point rate hike, indicating rising inflation risks. Goswami notes that while inflation is expected to average between 4.5% and 5% for the financial year 2027, any further increases in oil prices could lead to a tightening of monetary policy. He suggests that investors with a higher risk tolerance should consider government securities with maturities of 20 to 30 years, which are currently yielding around 7.5%, reflecting a favorable risk-reward scenario. Overall, Goswami believes that the current market conditions present a unique opportunity for investors willing to navigate the volatility.