Global banks buy shorter-dated Indian sovereign bonds due to lower treasury bill supply and improved liquidity.

Global banks are targeting shorter maturities in their purchases of India's sovereign bonds, driven by lower supply of treasury bills and improved banking liquidity. Foreign banks bought nearly $7.2 billion in all maturities since June, with preference for shorter-dated notes to manage balance sheets. Higher government spending and large bond maturities have contributed to the liquidity improvement.

July 15, 2024
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