Weekly foreign selling of India's index-linked debt at 6-month high, but funds stay bullish
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Foreign investors in Indian government bonds have turned cautious, selling the most global index-linked debt in over half a year last week, as rate-cut bets fade, bond supply stays heavy, and the rupee weakens. Foreign funds net sold over 54.3 billion rupees (nearly $600 million) of bonds that are linked to global indexes last week, in their worst selloff since the week ended May 30, clearing house data showed. WHY IT'S IMPORTANT Foreigners currently own less than 3.5% of total Indian bonds. New Delhi wants that share to rise as government borrowing is set to be elevated for the next few years and as banks look to reduce their holdings to meet rising credit demand. Sustained foreign inflows also help the local currency and improve the chance of inclusion in global indexes. Live Events BY THE NUMBERS Foreigners slashed positions from both the shortest and longest maturity index-linked papers, with net sale of 27 billion rupees in...