On Thursday, Indian government bonds experienced a decline as oil prices resumed their upward trajectory, fueled by concerns over the sustainability of the U.S.-Iran ceasefire. The benchmark 6.48% 2035 bond yield rose by 4 basis points to 6.9407%, following a significant drop in the previous session, which marked its largest single-session decline in nearly four years. Brent crude oil prices surged 2.5% to reach $97.10 per barrel, as fears of a lasting truce diminished after Iran expressed skepticism about ongoing peace talks. The Reserve Bank of India (RBI) opted to keep interest rates unchanged, citing the need to assess the economic impact of the ongoing conflict while highlighting potential inflation risks linked to rising crude prices and possible shortages of critical inputs. With the RBI's commitment to maintaining system liquidity at neutral to surplus levels, analysts anticipate a pause in interest rates for the next two policy meetings. Furthermore, investors are preparing for New Delhi's upcoming sale of 340 billion rupees in 10-year notes, which is expected to add to supply in a market characterized by low demand.