India Eases Bond Curbs for Foreigners Before Fed Liftoff
- Higher investment limit is positive for debt: FirstRand
- Benchmark 10-year yield declines to lowest since 2013
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India relaxed curbs on foreign ownership of its debt, giving global funds more access to Asia’s best-performing bond market.
The limit on foreign institutional holdings of government notes will be denominated in rupees instead of dollars and the cap will be raised in phases to 5 percent of outstanding debt by March 2018, the Reserve Bank of India said in a statement Tuesday. The Finance Ministry estimates current overseas ownership is about 3.8 percent, and the central bank said the increase will help attract 1.2 trillion rupees ($18.2 billion) of additional investment.