Banks Are Grabbing All the Indian Bonds Foreigners Dump
- Banks’ government bond holdings surge to 41.4 trillion rupees
- Foreigners have been net sellers of debt in last four months
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Domestic investors, led by lenders, are piling into Indian bonds on optimism the central bank stands ready to soak up a record debt supply. That’s pitting them against foreigners who continue to sell the nation’s debt.
Banks raised their holdings of sovereign notes to 41.4 trillion rupees ($555 billion) on bets the Reserve Bank of India will take measures to support the bond market, given the government’s 12-trillion rupee issuance plan.