Reported 8 months ago
India’s state-owned lenders are aggressively selling government bonds while foreign banks are increasing their holdings ahead of India’s inclusion in the JPMorgan emerging-markets bond index. State-run banks sold 230 billion rupees ($2.8 billion) of sovereign bonds recently, while foreign banks purchased 165.2 billion rupees of these notes. The move is attributed to position-taking and demand for profits as yields approach 7%, with the first phase of India’s inclusion in the index scheduled for June 28.
Source: YAHOO