Indian government bonds rise on Bloomberg Global Aggregate inclusion hopes
Business
Indian government bonds got a boost this Thursday, with prices rising on hopes they'll soon be included in Bloomberg's Global Aggregate Index.
Falling oil prices have helped ease inflation worries, and the main 2036-bond yield dropped to 6.7180%, signaling higher demand.
Foreign inflows ₹32,400cr into Indian bonds
Since June, foreign investors have put ₹324 billion ($3.40 billion) into Indian bonds, drawn by tax breaks and a steady rupee.
Lower borrowing costs are good news for the government, but some caution remains: rising global yields and concerns about a weak monsoon could make things tricky for India's bond market going forward.