Indian mutual funds offload $4.5bn government bonds after RBI hike
Business
Indian mutual funds are selling off more government bonds after the Reserve Bank of India raised interest rates for the first time in almost four years.
Since July, they've sold about $4.5 billion worth, expecting higher rates to stick around because of inflation.
Funds buy ultra-short, high-quality corporate bonds
With rates rising, funds like Axis Mutual Fund and Aditya Birla Sun Life AMC are moving money into ultra-short-term debt and high-quality corporate bonds that mature in just a few years.
Bandhan Asset Management has also cut back on how long it holds bonds.