FPIs sell ₹10,234 cr in debt mkt in April as yield spread hits 20-year low

Foreign Portfolio Investors (FPIs) have sold ₹10,234 crore worth of domestic debt on net basis in April so far as the yield spread between 10-year US Treasury bond and domestic benchmark 10-year bond narrowed to 190 basis points, lowest since September 2004, said market participants. 

 

This was the highest monthly outflow since April 2024, when foreign investors had net sold ₹11,218 crore.

 

“The outflows are due to profit-booking. We have moved from 250 basis points to 200 basis points yield spread as the normal spread given the new norms. The outflows will not sustain for a long time because there