Strong rupee lures FPIs to Indian bonds

The 10-year bond yields closed at 7.06 per cent on Monday

Buying in the debt market by foreign investors have started after the Reserve Bank of India (RBI) increased the limits for the April-June quarter, but it would take some time to fill the still unutilised limits, as fresh investors are not willing to take a position before more clarity on the US Federal Reserve’s policies emerge. 

The RBI on March 31 increased the limit on central government securities to Rs 2,31,000 crore, from Rs 2,20,000 earlier. Whereas limits for state development loans, or bonds issued by states, were increased to Rs 27,000 crore, from Rs 21,000 crore earlier. 

Following the limit increase,