Fed Rate Cut Pivot Could Boost India's Foreign Inflows, Fund Manager Says
- JPMorgan adds India sovereign debt to EM index starting Friday
- Foreigners have put about $11 billion in index-eligible notes
The Parliament House in New Delhi.
Photographer: Prakash Singh/BloombergThis article is for subscribers only.
Foreign flows to India’s $1.3 trillion sovereign bond market are likely to get a boost once the Federal Reserve and other central banks start cutting interest rates, according to T. Rowe Price Group Inc.
The “spread-yield advantage” for Indian bonds is likely to increase over core markets when the global monetary authorities start easing their policies, said Leonard Kwan, a fund manager at T. Rowe Price in Hong Kong. “Classically, the RBI cuts at a lower amplitude than a lot of the other markets.”