The surge follows the government's June 5 decision to cut taxes on capital gains and interest income on bonds, removing one of the last barriers for global funds investing in India's sovereign debt
The purchases by Fairfax India Holding Corp were made to bring capital into the country ahead of a potential deal to buy stake in government-owned IDBI Bank
Traders said Indian debt markets still face rate risks from El Niño's potential impact on inflation and growth and elevated global yields after a hawkish US Federal Reserve commentary
Global fund managers are turning more positive on India, citing improved policy flexibility and stronger differentiation from other emerging bond markets
Seeking to shore up the rupee and interest in bonds, India last week announced tax cuts for overseas bond investors and a host of measures aimed at boosting inflows and improving market access
Global funds bought ₹4,490 crore ($469 million) worth of index-eligible bonds on Friday, the most since June 30, 2025, when the government scrapped taxes on overseas investment in govt securities
Swap rates have gained since the US-Iran war began in late February, as traders bet that an oil-driven inflation surge will lead to tighter monetary policy
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The rupee fell about 1 per cent last week, its fourth consecutive weekly decline of a similar magnitude, to hit a record low of 94.84 against the dollar
Bloomberg Index Services said Indian government bonds will not be included in the Bloomberg Global Aggregate Index for now due to pending operational and market infrastructure assessments.
Lenders are discussing a potential solution with the ECB about easing charges imposed after Europe's markets agency withdrew recognition of the CCIL and other agencies three years ago
Although the volumes for surety bonds continues to be low, issuance in a non-paper manner will ease a lot of administrative work for the insurers and could also help in increasing volumes
Bond market investors are looking beyond short-term geopolitical noise, anchored by strong domestic fundamentals, surplus liquidity, rate cuts and a dovish RBI