Significant Outflows from Indian Bonds Amid Rising US Yields

Reported 5 days ago

Overseas investors are rapidly reducing their holdings in Indian bonds, experiencing the largest outflows since June, due to increasing US yields making these securities less attractive. In the past week, global funds sold a net ₹49.6 billion ($588 million) of bonds, reflecting a total net offloading of ₹87.5 billion this month. This trend coincides with narrowing interest-rate differentials between the US and India, and a more cautious stance from the Reserve Bank of India regarding rate cuts amid rising inflation.

Source: YAHOO

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