Bond market buzzing as foreign investors pump $1.2 bn in a single day

Dealers expect RBI to sell another Rs 20,000-cr worth of bonds

The bond market is buzzing with activity even as yields look relatively stable.

Foreign investors are increasing their exposure to local bonds, mainly on the corporate bond side, while public sector banks (PSBs) have become massive sellers of government bonds in the market, booking profits after yields fell about 10 basis points in a week.

The yield on the 10-year bond stood at 6.46 per cent on Wednesday, from 6.56 per cent at the start of the month. According to the National Securities Depository data, foreign investors bought $1.2 billion equivalent (Rs 7,853 crore) in Indian debt paper on Tuesday,