MUMBAI: Indian government bonds edged higher on Monday as geopolitical jitters ebbed ahead of a third round of U.S.-Iran nuclear talks, though heavy debt supply due this week capped gains. The benchmark 6.48% 2035 bond yield settled at 6.6970%, down from 6.7215% on Friday, snapping a two-day rise. Bond yields move inversely to prices. Geopolitical worries had weighed on sentiment last week after U.S. President Donald Trump issued fresh warnings, urging Iran to strike a nuclear deal, setting a 10–15-day deadline. The standoff sent Brent crude futures to about six-month highs. Higher crude prices are a key risk for net energy-importer India. Indian traders cut risk on Friday ahead of the weekend on fears of an escalation. “No further escalation in the Middle East over the weekend led to some short covering,” a private bank trader said. Iran’s comments that it was prepared to make concessions in talks with the U.S. in exchange for sanctions relief and recognition of its right to enrich uranium helped ease concerns over potential conflict. Brent fell about 1% on Monday and was last at $71.28. With the risk mood improving, some buying emerged at key technical levels. “There were buyers near 6.72–6.73% levels on the 10-year,” said Alok Sharma, head of treasury at ICBC, Mumbai. Attention now turns to supply. Indian states will raise 445.5 billion rupees ($4.91 billion) in their biggest weekly debt sale on Tuesday, while New Delhi will auction the benchmark 10-year note on Friday. Rates India’s overnight index swap (OIS) rates eased as geopolitical concerns receded, with traders eyeing steepener positions between the short and long ends. The one-year OIS rate fell 3 bps to 5.49%. The two-year was down 4 bps at 5.6050%, and the five-year fell 5.5 bps to 6.0375%.