Central Bank Emboldens Funds to Move Into India’s Long Bonds
- Quantum moves to 10-14 year bonds vs up to three-year duration
- Central bank buying outweighs concern over rising supply
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The Reserve Bank of India is making longer-tenor sovereign bonds attractive again.
Quantum Mutual Fund has moved to the 10-14 year segment after staying in duration of up to three years in August in its 691 million rupees ($9.4 million) Dynamic Bond Fund. UTI Asset Management Co. has turned overweight on bonds maturing in up to 15 years, after cutting duration two months ago.