Indian government bonds fell on Thursday as the benchmark 6.48% 2035 bond yield rose by 4 basis points to 6.9407%, driven by a rebound in crude oil prices, which increased by 2.93% to $97.53 per barrel. This rise follows a significant drop in oil prices, reflecting renewed uncertainty over the US-Iran ceasefire negotiations. The Reserve Bank of India (RBI) opted to keep the repo rate unchanged, citing inflation risks due to high crude prices. Anil Bamboli, Head of Fixed Income at HDFC Asset Management Company, expressed a constructive medium-term outlook for Indian fixed income, suggesting that markets have largely accounted for existing risks. Analysts recommend a barbell investment strategy, focusing on both short and long-term bonds to mitigate risk and enhance returns. Puneet Pal, Head of Fixed Income at PGIM India Asset Management, anticipates the yield curve will steepen, projecting the 10-year bond yield to range between 6.75% and 7.10% in the coming months. Investors are advised to consider short-duration money market funds and staggered investment approaches to manage market volatility effectively.