Indian government bonds rose on Tuesday as plunging crude prices and strong demand at a state debt auction eased concerns over fresh U.S. sanctions on Iran and the Reserve Bank of India's rate outlook.The benchmark 6.94% 2036 bond yield settled 2 basis points ‌lower at 6.8488%, ⁠reversing ⁠Monday's rise. Bond yields move inversely to prices.Indian States raised 201 billion rupees ​through bond sales earlier in the day, with some issuers securing their tightest spreads ​over central government debt in months.Japanese bond ETFs attract a record $1.5 billion in net inflows in 2026 so far, Morningstar sayThis year, Japanese bond exchange traded funds have experienced an unprecedented surge in inflows, driven by increasing government bond yields that enhance the appeal of Japan's debt for investors. European market participants are diversifying their portfolios, moving away from US dollar assets due to growing uncertainties surrounding the dollar's reliability as a safe haven. Consequently, Japanese bonds present an attractive option with solid yields and developed-market risk.Gujarat locked yields at 7.47% for a 10-year note, narrowing its spread to 60 bps over the ​benchmark yield, which hovered at 6.87% at the ⁠time of ‌bidding. The gap slimmed most since early April ​and undercut ​the fiscal-year average of 72 bps.Brent crude tumbled ⁠nearly 5% to $89.70 a barrel, tempering inflation fears even as Tehran vowed to retaliate against Washington's expanded sanctions.Still, ​traders were wary of supply disruptions as only two tankers crossed the Strait of Hormuz on Monday, the lowest daily count since early May.At home, Traders were also caught between inflation and rate-hike concerns and support from ample liquidity.RBI's August policy Minutes reinforced ‌concerns that policymakers could raise rates if inflation risks broaden."With the possibility of further rate hikes, investors may consider ​a barbell ​strategy or maintain ⁠a low-duration bias to limit interest-rate risk while retaining reinvestment flexibility," said Deepak Agrawal, CIO-Debt at Kotak Mahindra AMC.The debt market will remain shut on ​Wednesday for a local holiday.RATESOvernight indexed swaps sank on receiving pressure as traders cheered falling oil prices.The one-year fell 6.25 bps to 5.8550%; the two-year dropped 9.25 bps to 6.04%; and the five-year eased 10 bps to 6.3475%.