The Indian government bonds are a hit with foreign investors. Investments by Foreign portfolio investors has crossed a $1 billion Mark in just 19 days after government securities were included in the JP Morgan Global Bond index on June 28th.
Inclusion in JP Morgan Global Bond Index
This information was asked for the data from the Clearing Corporation of India and as for the report by the economic Times with the softening bias in bone heeld experts expect inflows to increase at an accelerated Pace in the coming months.
Bond Yields
Bond yields have marginally moderated over the past couple of months due to increased inflows in the runup to bond inclusion.
Foreign Investment
Foreign investors invested more than 11 billion into index eligible bonds since the related announcement was made in September last year.
Total FBI Inflows
Total FBI inflows in the previous month excluding June 28 stood at $1.8 billion and list say as the weight of Indian Securities gradually rises in the index.
Future Projections
The domestic bond market is likely to attract nearly $30 billion inflows over the next 10 months bond is a sort of a certificate issued by the party which takes loans or debts.
What are Government Bonds?
The government bonds of GX as they are called are a debt investment on the sovn government of a country.
Significance of Government Bond Market
The Government Bond Market is a sign of belief in the Indian government’s ability to repay its debts including interests more the belief in government bonds more is on the corporate bonds of the that particular country.
Indian Bond Market
In India’s dead or bond market is still in its developing stage and Far Behind the equity markets.
Conclusion
This is the developing story and we at min shall keep you posted as more investors deal with the Indian bonds.