Day after Modi win, global investors pumped in $216 mn into Indian bonds

Global investors piled a net $216.3 million into Indian bonds on Friday, the day after Prime Minister Narendra Modi’s sweeping election victory.

The second-biggest daily inflow in two months turned foreign funds into net buyers of rupee-denominated notes for May, signaling the debt’s appeal may be rising as wagers grow that the Reserve Bank of India will soon add to its two interest-rate cuts this year.

Modi’s re-election put to rest any uncertainty about a diverse group of political parties coming to power at a time when growth is already slowing. The benchmark 10-year yield slipped as much as seven basis points