FPIs keep debt market bets steady despite narrowing bond yield gap

Spread between Indian and US 10-year bond yields at 3.14%, narrowest in over a decade


Anjali Kumari Mumbai

Listen to This Article

Despite the narrowing spread of yields between the benchmark 10-year Indian government bond and the 10-year US Treasury bond, foreign portfolio investors (FPIs) are continuing to invest in the domestic debt market this year -- a trend backed by a stable currency and a less volatile bond market. FPIs have been net buyers in the debt market in 2023 so far, marking the first time since 2019.

The yield spread between the 10-year Indian government bond and the 10-year US Treasury note stood at 3.14 per cent on Tuesday – the narrowest in over a decade.

Market participants said investors were focusing on the absolute return at the moment, rather than the spread.

Also Read

T-bill yields continue to surge, at the same level as 10-year bond

Monetary policy: Bond yields soften after RBI hits pause on rate hike

India's 10-year bond yield falls to 1-year-low ahead of Fed rate decision

As market yields rise, premium of sovereign green bond slightly narrows

LIC Housing Fin, HDB Finance reduce fundraise sizes on hardening yields

Sebi provides facility to remedy erroneous transfers in demat accounts

Maruti to issue preferential equity shares to Suzuki to buy Gujarat plant

NIIT Learning valued at Rs 5,000 cr; Concord Biotech IPO subscribed 25x

Panel to decide reversal of erroneous transfers in demat accounts

Sebi categorises dues worth Rs 73,287 crore as 'difficult to recover'

First Published: Aug 08 2023 | 8:19 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com