Reported 12 months ago
A fund manager from T. Rowe Price Group Inc. predicts that India's $1.3 trillion sovereign bond market will experience an increase in foreign inflows as the Federal Reserve and other central banks cut interest rates, resulting in a higher 'spread-yield advantage' for Indian bonds over core markets. India's faster economic growth may lead its central bank to ease policies at a slower pace, keeping the nation's bond yields higher than its emerging-market peers. The 7% yield on India's benchmark 10-year bonds, one of the highest in Asia, contrasts with the 4.3% yield on US Treasuries, making Indian bonds more appealing to investors.
Source: YAHOO