Indian government bonds are set to be included in the JPMorgan Emerging Market local currency debt index from June 28
Bond yields have eased over the last few sessions, after the Reserve Bank of India's board last week approved the transfer of a record 2.11 trillion rupees as surplus to the government
Along with direct purchases, foreign investors have leaned on derivative proxies to gain exposure to Indian bonds
The government has bought back securities aggregating to only around Rs 17,900 crore ($2.15 billion), against notified quantum of Rs 1.60 trillion in May
Traders were also cautious after the 10-year US yield moved off its recent lows, but continued to remain around the 4.35 per cent mark.
The central bank said it would buy back Rs 60,000 crore worth of securities, maturing this financial year, on May 21
Inflation accelerated in the first quarter on strong domestic demand after moderating for much of last year
The US Treasury yields slipped on Thursday ahead of inflation reports that are pivotal for the Federal Reserve's higher-for-longer rate strategy
The difficulty in setting up to trade in India due to an elaborate documentation process has been one reason why foreign investors have been apprehensive about the nation's entry into global indexes
Once the change takes effect on June 28, it will be easier to compare the performance of an Indian credit fund with an investment in Singapore, Korea or the US, said the head of BPEA Credit
Foreign investors have pumped roughly Rs 78,000 crore ($9.4 billion) into eligible sovereign bonds since JPMorgan Chase & Co.'s landmark announcement in September
The selloff came on the day when the rupee fell by the most in six months
India's trillion-dollar sovereign bond market is gearing up for a rush of foreign money in the run-up to inclusion in JPMorgan Chase & Co.'s emerging markets bond index in June
The benchmark 10-year bond yield ended at 7.16 per cent, after closing the previous session at 7.19 per cent
Public sector lender Bank of Baroda on Friday said it plans to raise up to Rs 2,500 crore by issuing Basel III compliant bonds. The 'Capital Raising Committee' has approved a proposal to raise tranche I of Basel III compliant Tier II bonds with a base issue size of Rs 1,000 crore with a green-shoe option to retain oversubscription of up to Rs 1,500 crore, it said in a BSE filing. Under Basel-III capital regulations, banks globally need to improve and strengthen their capital planning processes. The bank's shares were trading at Rs 219.20 apiece on BSE, down 0.36 per cent over the previous close. The stock had touched a 52-week high of Rs 224.30 on Thursday.
Inflows to fixed income, including corporate debt, have reached nearly $6 billion thus far in 2023, with this month alone accounting for about a quarter of the flows, according to data compiled
"This pace, however, may not sustain at least in the immediate future as globally investors will eye developments in the Middle East conflict and what impact it could have on oil prices"
For the fast-growing economy that typically runs a current-account deficit, the decision opens the door to as much as 10% of the $236 billion of assets at funds
Foreign exchange reserves, which are higher than last year, and the credibility of the regulators will work in favor of the South Asian country, CIO SBI Funds said
The decision sets the stage for billions of dollars of inflows just when the bond market is straining under record government borrowings