Indian government bonds ​were flat early on Tuesday, ​following a selloff, as oil absorbed stringent U.S. sanctions without ​a spike, allaying jitters for the world's third-largest oil importer.Traders also awaited states' 201-billion-rupee ($2.10 billion) debt sale later in the day, which will test appetite.The yield on ‌the benchmark ⁠6.94% ⁠2036 bond was flat at 6.8708% as of 12:10 p.m. IST. The yield climbed ​2 bps in the previous session.India bonds flat as oil prices shrug off US curbs on IranIndian government bonds experienced little movement early Tuesday, stabilizing after a recent decline. Oil prices reacted unfazed to new US sanctions, which alleviated some importer tensions. Market players are anticipating an upcoming state debt sale that could reveal investor appetite. Although bond yields are stable, lingering inflation and currency effects might weaken the market's mood. Nevertheless, abundant banking liquidity continues to bolster demand for bonds.Bond yields move inversely to prices.With the U.S.-Israeli ​war with Iran approaching six months, Treasury Secretary Scott Bessent on Monday announced what he called an "economic onslaught" targeting Iran's global financial links. The measures ​broadened sanctions, while warning countries and firms ⁠against doing business ‌with Tehran.Before the announcement, Iran had threatened ​a military response ​and deeper cuts to Gulf oil exports if ⁠Washington imposed further economic measures.And yet, Brent crude held near $92 a barrel as investors wanted clearer signs of supply disruption."A lot of factors are weighing on bonds - the Gulf crisis, weakening currency, and inflation, and we may see some selloff after the discounted swap-window closure," said Umesh Tulsyan, managing director at Sovereign Global Markets."We may see 6.90% - 6.95% on the 10-year yield soon."Traders ‌are also caught between inflation and rate-hike concerns and support from ample liquidity, which keeps demand for bonds strong.Minutes ​of the Reserve ​Bank of India's ⁠August monetary policy showed policymakers were willing to raise rates if inflation risks materialised and broadened.Banking-system liquidity surplus is on track to remain above 3 ​trillion rupees ($31.35 billion) for its longest stretch in four years.RATESOvernight indexed swaps eased as crude prices shrugged off U.S. sanctions.The one-year fell 1.5 bps to 5.9025%; the two-year dropped 3 bps to 6.1050%; and the five-year eased 2.75 bps to 6.42%.