Reported about 1 year ago
According to Citigroup Inc., global investors who have invested in Indian government bonds for their inclusion in a key debt index are likely to remain invested and not rush to take profits. With India's higher debt yields and fast-growing economy compared to China and the US, the inclusion in the JPMorgan index is expected to bring in around $30 billion into the country. Despite concerns over the recent election outcome and fiscal policies, Citigroup predicts that India's 10-year yield could drop to 6.80-6.85% with fiscal consolidation, potentially reaching 6.5% with rate cuts by the Federal Reserve and the Reserve Bank of India.
Source: YAHOO