India Opens Access to Benchmark Sovereign Bonds in Index Bid
- Funds can buy 5, 10, 30-year bonds from April 1 without limits
- Move may help India to meet its record borrowing target
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India opened up a wide swath of its sovereign bond market to overseas investors, taking its biggest step yet to secure access to global indexes as the government embarks on a record borrowing plan. Bonds rallied.
Global funds will be able to buy new five-, 10- and 30-year bonds from April 1, the Reserve Bank of India said in a statement late Monday. It scrapped caps on some issued debt including the benchmark and said tenors may be changed or added.