MNI: GERMANY OCT RETAIL SALES -1.5% M/M

MNI: GERMANY OCT EXPORT PRICE INDEX 0.3% M/M, 0.6% Y/Y

MNI BRIEF: Trump Tariffs To Push China, EU Cooperation - BOC

MNI: PBOC Net Drains CNY156.1 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1877 Fri; -1.39% Y/Y

MNI BRIEF: China May Inject CNY1 Trln To Replenish Big Banks

MNI: SWISS Q3 GDP +0.4% Q/Q, +2% Y/Y

MNI: SWISS KOF NOV ECONOMIC BAROMETER 101.8

MNI: FRANCE GDP Q3 2ND EST +0.4% Q/Q

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

INDIA: Bond Market Seeing First Foreign Outflows. 

INDIA
IndiaEM BulletBulletAPACEmerging Market News
  • Since being included in JPMorgan’s index in the mid part of this year India has enjoyed strong re-balancing inflows into their bond market from foreign investors.
  • However with USD strength presenting challenges for the Rupee, November is likely to see the first outflow since June.
  • Global investors via the Fully Accessible Route (“FAR”) are on track to have withdrawn INR77bn (US$900m) from data as of 28th.
  • Globally, investors have retreated to USD assets, with many major markets outside of the US experiencing outflows for stocks and bonds.
  • The has been driven by political uncertainty from the incoming new administration and the Federal Reserve now likely to be cutting rates at a much slower pace than first thought.
  • This has seen the INR under pressure and the RBI forced to use their FX reserves to defend it. a theme this is likely to continue into year end.
  • Despite the outflows India’s 10-year government bond is on track to finish lower in yield in the period since index inclusion. 
167 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Since being included in JPMorgan’s index in the mid part of this year India has enjoyed strong re-balancing inflows into their bond market from foreign investors.
  • However with USD strength presenting challenges for the Rupee, November is likely to see the first outflow since June.
  • Global investors via the Fully Accessible Route (“FAR”) are on track to have withdrawn INR77bn (US$900m) from data as of 28th.
  • Globally, investors have retreated to USD assets, with many major markets outside of the US experiencing outflows for stocks and bonds.
  • The has been driven by political uncertainty from the incoming new administration and the Federal Reserve now likely to be cutting rates at a much slower pace than first thought.
  • This has seen the INR under pressure and the RBI forced to use their FX reserves to defend it. a theme this is likely to continue into year end.
  • Despite the outflows India’s 10-year government bond is on track to finish lower in yield in the period since index inclusion.