Foreign investors put in bids worth $1.45 bn for govt bonds

In a strong demand for government bonds, overseas investors have put in bids worth over USD 1.45 billion in an auction for debt securities valued at about USD 678 million.
The auction was held at BSE's ebidxchange platform for allocation of investment limits in government debt securities worth Rs 4,176 crore (USD 677.77 million.) The auction attracted bids for Rs 8,961 crore (USD 1.45 billion), as per the exchange.
At the end of two-hour auction this evening, as many as 76 bids were made in the auction, of which 31 were declared successful.
The debt auction quotas give overseas investors the right to invest in debt up to the limit purchased.

In the auction conducted by National Stock Exchange earlier this month, government bonds had attracted bids worth Rs 4,963 crore, as against securities valued Rs 3,117 crore on offer.
Foreign investors have put in over Rs 1.2 lakh crore in the debt market so far in 2014. The equity market has also seen similar trends with overseas fund inflows of over Rs 83,000 crore since the beginning of the year.
According to market experts, overseas investors have been pumping money in the country's debt market primarily on account of government's reforms agenda and the RBI's pledge to tame inflation.
As per norms, foreign investors can purchase up to USD 25 billion in government debt without restrictions. Exchanges initiate the auction mechanism once overseas investor reach 90 per cent of that limit.