‘Buy India’ Bonds Chorus Grows as Demand Outstrips Supply
- FTSE inclusion adds to demand on top of $18 billion bond flows
- India has cut bond supply for FY25, slashed T-bill issuances
The Parliament House in New Delhi.
Photographer: Prakash Singh/BloombergThis article is for subscribers only.
India’s $1.3 trillion bond market is facing a peculiar issue: investors can’t get enough of sovereign bonds as the government buys back debt and cuts borrowings, resulting in a supply shortage.
The administration repurchased nearly 245 billion rupees ($2.9 billion) of notes on Thursday. That follows last month’s reduction in its Treasury bill issuance by 400 billion rupees. The Reserve Bank of India also halted secondary market sales of bonds last week for the first time since July.