India Govt Bonds See Likely Buying From Foreign Banks
Monday,
25-Sep-2017
02:04 PM (IST)
Indian government bonds keep gains amid likely buying from foreign banks as concerns over further fall in INR ease after hike in foreign investment limit for corporate bonds, traders say. “Foreign banks were major sellers last week, but they are on the buying side today as flows are likely to resume once the debt limit is increased from next month, which will support the rupee,” trader at foreign bank says. “One of the major reasons for the bond selloff was the sudden depreciation in currency. Debt is the only space where there are foreign inflows,” he adds. Last week RBI announced a hike in limit for investment in corporate bonds; INR270 billion hike from October and INR170 billion from January. India benchmark bond yield 2 bps lower at 6.64% now.
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