October First Setback in Six Months in Big Year for Indian Bonds

  • Selloff may prove temporary as yields look attractive: DBS
  • Rising inflation, higher US yields are near-term hurdles
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Foreign investors are set to net sell Indian bonds this month for the first time since April with a pickup in local inflation and a surge in US yields cooling appetite for rupee debt.

Overseas investors sold 28 billion rupees ($333 million) of the so-called Fully Accessible Route bonds in October, according to Clearing Corporation of India Ltd. data.