Global Funds Are Making a Bet on India’s Longer-Maturity Bonds
- Overseas funds now have 17% of debt holdings in longer bonds
- abrdn says bonds in 11-15 year range are favored part of curve
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Global funds are snapping up India’s longer-maturity bonds in a bet the central bank will eventually become less hawkish and as they position for those securities that will be included in JPMorgan Chase & Co. indexes.
The proportion of foreign money allocated to local bonds due in 10 years or more climbed to 17% last week, up from just 11% in September, while that in debt maturing in five years or less slipped 10 percentage points to 44% over the same period, according to calculations by Bloomberg.