Alpha Binwani Capital: “Foreign investors sold 47.3 billion rupees ($490 million) of index-eligible Indian government bonds on Friday—the largest single-day outflow since April 2025 and the second-biggest in at least three years. The selling came as the yield premium over U.S. Treasuries narrowed to a more than two-decade low, reducing the appeal of Indian debt. Pressure intensified after the RBI announced plans to sell sovereign bonds to absorb excess banking-system liquidity, triggering a broader market selloff on Tuesday. Rising U.S. yields and growing expectations of a Fed rate hike are also increasing pressure on the RBI and other central banks to tighten policy more aggressively” IndiaBonds #IndianEconomy #GovernmentBonds #ForeignFlows #BondOutflows #FIIs #RBI #ReserveBankOfIndia
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