How US Rate Cuts Could Impact Indian Debt Market: A Closer Look

Monday, 15 July 2024, 19:14

Global interest in Indian debt is anticipated to rise significantly, surpassing the expected monthly inflow of $2 billion due to JP Morgan's bond index inclusion. Citi's Aditya Bagree predicts a surge in inflows as the US Federal Reserve plans rate cuts, potentially attracting EM bond fund investments. With India's sovereign debt emerging as a top choice for volatility-adjusted carry trade in the area, recent inflows of $32 billion coupled with passive investments and the country's economic resilience may fuel increased foreign participation. The stability of the rupee and positive economic indicators further enhance investor confidence in Indian assets, presenting a promising outlook for the market.

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Insights from Citi Exec on US Rate Cuts and Indian Debt

Global interest in Indian debt is projected to soar, exceeding expected monthly inflows from JP Morgan's bond index inclusion.

Citi's Aditya Bagree forecasts a surge in inflows as the US Federal Reserve gears up for rate cuts, potentially attracting EM bond fund investments.

India's sovereign debt highlighted as a top choice for volatility-adjusted carry trade
Total recent inflows amounting to $32 billion with prospects of increased foreign participation driven by passive investments and India's economic resilience

The stability of the rupee and favorable economic indicators contribute to enhanced investor confidence in Indian assets.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

Insights from Citi Exec on US Rate Cuts and Indian Debt

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