A rally in India’s sovereign bonds, fueled by mutual funds and overseas investors has left most Mumbai traders baffled at their sudden fortune.
Yields dropped across the curve last week, with those on the benchmark 10-year bond declining ten basis points, the biggest weekly drop since April. Government debt auctions are finding buyers again, after a spate of earlier sales were canceled or rescued by underwriters.
A rally in India’s sovereign bonds, fueled by mutual funds and overseas investors after weeks of indifference, has left most Mumbai traders baffled at their sudden fortune.
Mutual funds turned net buyers with purchases of 151 billion rupees ($2.1 billion) of debt over the last 10 trading days.
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