Indian government bonds rise 6th week on inflows, cheaper oil
Indian government bonds are having a moment: this is their sixth straight week of gains.
The boost comes from big foreign investments and cheaper oil, with investors feeling upbeat that Indian bonds could soon join a global debt index, making things even more exciting.
Foreign inflows to India ₹368 billion
Foreign investors have pumped in over ₹66 billion ($693 million) in the first four days of this week, adding up to ₹368 billion in the past six weeks.
The 10-year benchmark bond is getting most of the attention and now makes up 15.4% of all foreign holdings at ₹105 billion.
Yields fall amid India index hopes
Bond yields are dropping, with the 10-year yield down by six basis points this week (27 basis points since June).
Lower crude prices (important since India imports almost all its oil) are helping too.
Policymakers are working to attract more foreign money, fueling hopes for India's spot in Bloomberg's Global Aggregate Bond Index.