FPIs invest $1.6 bn into Indian bonds in 3 days |
After the Reserve Bank of India`s monetary policy committee meeting, bond yields have continued to fall. Though foreign portfolio investors turned bullish on Indian debt having pumped over $1.6 billion into bonds in the last three days of the previous week. They still remained net sellers of Indian debt at over $2 billion on a net basis. Even with the recent buying spree, FPIs still remain net sellers of Indian debt, but the figure has come down to $958 million on a net basis. Yields have been down across the globe, but the effect was not seen in the Indian bond markets as investors were keenly awaiting the Budget and the monetary policy. “Concerns over the coronavirus has hurt the global growth figures at least for the January¬-March quarter. In India, the borrowing figures for FY21 announced in the Budget as well as the recent monetary policy, particularly the long ¬term repos, were extremely conducive for the bond market. The offshore overnight indexed swaps have been significantly down in recent times. Growth figures are being revised downwards globally because of the China factor and that could have led to increased allocations to emerging markets and to India. The US yields are also down and so are oil prices.
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