Leaking from head bolts

I don't know what this will do to your torque readings, but since it is a liquid that cures in the absence of air I will mention another product that you may want to consider for this problem. It is used a lot to seal joints on model steam locomotives (search 1/8 scale steam locomotives on you tube), it's readily available on the "Jungle site".
Loctite 542 Thread Sealant
Suitable for metal threads only
Instant low pressure seal
Resistant to fuel, oil, coolants, and hydraulic fluids
1,000 hour % of initial strength
Motor oil 100%
Unleaded fuel 95%
Brake fluid 95%
Water / Glycol 50/50 mix 90%
Locks against vibration loosening
Hope this helps................................