Foreign investors buy $10 billion of Indian govt bonds since JPM inclusion announcement
Foreign ownership of Indian bonds rose to an all-time high of 4.45% of total, compared to 2.77% before the inclusion announcement.
Foreign investors have bought more than $10 billion ( ₹83,426.75 crore) of Indian government bonds that will be included in J.P. Morgan's debt index on June 28, taking international ownership of India's bonds to a record high, Reuters reported.
Overseas buyers now own 1.79 lakh crore rupees of Indian bonds included in the so-called fully accessible route (FAR) which allows unrestricted foreign purchases, according to the report.
Also Read | SBI approves raising up to ₹20,000 crore for FY25 via long term bonds
Foreign ownership of Indian bonds rose to an all-time high of 4.45% of total, compared to 2.77% before the inclusion announcement, the report read.
However, their ownership share of all outstanding government bonds remains lower at 2.4%, compared to the peak of 4.6% in 2017, according to Reuters.
Foreign investors have been shifting from shorter duration bonds to longer ones with maturities of nine years and above.
Also Read | Investors bought ₹27,000 cr of sovereign gold bonds in FY24: RBI report
Western Asset Management, which manages around $250 million ( ₹2,085.67 crore) of debt under its Asian opportunities Fund, is overweight on longer duration Indian government bonds, Wontae Kim, a research analyst said last month.
{{/usCountry}}Western Asset Management, which manages around $250 million ( ₹2,085.67 crore) of debt under its Asian opportunities Fund, is overweight on longer duration Indian government bonds, Wontae Kim, a research analyst said last month.
{{/usCountry}}The government's emphasis on fiscal consolidation and inflation remaining within the central bank's targeted range have been major positives, he said.
{{/usCountry}}The government's emphasis on fiscal consolidation and inflation remaining within the central bank's targeted range have been major positives, he said.
{{/usCountry}}India's strong macroeconomic fundamentals and stable currency outlook have encouraged investors to buy bonds without hedging their forex exposure, according to the report.
{{/usCountry}}India's strong macroeconomic fundamentals and stable currency outlook have encouraged investors to buy bonds without hedging their forex exposure, according to the report.
{{/usCountry}}