Asset managers sold a net ₹51 billion ($527.08 million) of government bonds in the three sessions after the rate increase, adding to sales of ₹378 billion in July-September
Asset managers sold a net ₹51 billion ($527.08 million) of government bonds in the three sessions after the rate increase, adding to sales of ₹378 billion in July-September
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Indian mutual funds have sold $4.5 billion in government bonds since July, prompted by changing rate expectations. The Reserve Bank of India raised rates for the first time in nearly four years, signaling further increases. Many asset managers are shifting to short-duration assets to mitigate risks associated with rising yields. Fund managers have noticed an increase in long-term bond yields reaching nearly three-year highs.
