On Monday, Indian government bonds trimmed most of their losses as softer-than-expected inflation data encouraged value buying. Retail inflation accelerated to 3.40% in March, which is below the Reserve Bank of India's target of 4% and the 3.48% forecast by Reuters. The yield on the benchmark 6.48% 2035 bond ended at 6.9395%, up 2 basis points from Friday, but down 4 basis points from the day's high. The rise in Brent crude oil prices, which topped $100 per barrel following U.S. President Donald Trump's announcement to block ships to and from Iran, triggered a risk-off sentiment in Indian markets. This led to a 0.7% decline in the Indian rupee, which fell to 93.3750 per dollar, and a 0.86% drop in the Nifty 50 index. Despite these pressures, Debendra Kumar Dash, senior vice president of treasury at AU Small Finance Bank, noted that the softer inflation data prompted some value buying, with mutual funds and foreign lenders purchasing a total of 62.26 billion rupees (approximately $667 million) worth of government bonds. The Indian debt markets will be closed on Tuesday, April 14, for a local holiday.