Indian bonds drop as Bloomberg delays global index entry
Indian government bonds slipped on Wednesday after Bloomberg decided to hold off adding them to its $3 trillion Global Aggregate Index.
The 10-year yield touched 6.64% intraday before closing at 6.63%.
Bloomberg says it will review the inclusion again by mid-2026, but for now, the wait continues.
Why does this matter?
This delay could keep $20-25 billion in foreign investment out of India's bond market, according to market estimates.
That means less demand for bonds, higher yields, and more ups and downs for investors.
It can also put extra pressure on the rupee and stock markets—so even if you're not into finance, it's something that can ripple through the economy.
What's behind the holdup?
Bloomberg pointed to some tech and process snags: no automated trading yet, tax-related settlement delays, and tricky fund registration rules that don't work well for global investors.
On top of that, rising oil prices (thanks to Middle East tensions) are making everyone a bit cautious.
To help steady things, India's central bank has already bought ₹1 trillion in bonds this month and plans another ₹500 billion soon.