RBI's change in monetary policy stance ends bond rally

Foreign investors have been net sellers in bond market in past few months but turned positive in Feb

The Reserve Bank of India (RBI)’s sudden change in stance has spooked the bond market. Yields rose sharply on Wednesday after the monetary policy was announced, and has retained those levels. 

But this could also work in favour of the market in the immediate term as the levels seem attractive for fresh foreign investors to come in. 

Foreign investors have been net sellers in the bond market in the past few months, but have turned positive in February. 

Till date this month, foreign investors have invested Rs 6,463 crore in the Indian markets — Rs 4,271 crore in debt and