 "Foreign interest in Indian govt bonds to pick up: Barclays")
Foreign interest in Indian government bonds is likely to pick-up toward the end of the year, Barclays Capital said in an email to clients.
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The increased demand may be driven by expectations of monetary easing in the first quarter of 2013, “probable” open market bond purchases by RBI due to tight liquidity, overall improvement in market sentiment relative to H1, and new year allocations from foreign investors, Barclays said.
Barclays said foreign investors’ holdings of Indian bonds rose about $1.3 billion in October, the largest increase since December 2011 and January 2012.
Foreign investors bid Rs 2842 crore ($515.84 million) in the unrestricted category of government bonds on Tuesday, more than double the Rs 1,094 crore on offer, sources said.
Reuters