Indian government bonds ended little changed on Friday, at the end of a week that marked six straight weeks of gains, supported by unwavering foreign purchases on bets that Indian government bonds will be included in a global debt index.The benchmark 6.94% 2036 bond yield ended at 6.7108%, after closing at 6.7180% on Thursday. Bond yields move inversely to prices.The 10-year bond yield dropped 6 basis points in the week, bringing the aggregate fall since the start of last month to around 27 bps.ICICI Bank mulls first benchmark dollar bond sale since 2017ICICI Bank is planning its first benchmark US dollar bond sale since 2017, aiming to raise at least $500 million through offshore bonds. The proposed issuance comes after the RBI introduced a concessional foreign exchange swap facility, encouraging Indian lenders to tap overseas markets for funding."The downward movement was driven by strong foreign investor inflows, softer crude oil prices, and growing expectations of India's inclusion in a global index, which could attract substantial passive investments," Tata Mutual Fund said in a note.Foreign investors net bought bonds worth over 66 billion rupees ($693 million) in the first four days of the week, according to clearing house data. Traders said they remained on the bid side on Friday as well.Foreign investors have accumulated bonds worth around 368 billion rupees in the last six weeks, with data for Friday yet to be added.They have shown strong appetite for the five most liquid papers, especially the benchmark 10-year bond. They now hold 105 billion rupees of the benchmark note, meaning it accounts for 15.4% of their total holdings.After a raft of measures to support the local currency and attract foreign inflows from Indian policy makers last month, overseas investors have turned bullish as they anticipate these notes will be included in the Bloomberg Global Aggregate Bond Index in its next review.Oil prices eased on the day, providing further relief to investors, as India imports almost 90% of its crude requirements.RATESIndia's overnight index swap rates largely consolidated this week, after nosediving for most of June.The one-year swap rate eased slightly to 5.7775%, while the two-year swap rate fell 1.75 bps to 5.91%. The five-year rate settled 2 bps lower at 6.18.
India bonds rise for sixth straight week as foreign flows continue
Indian government bonds took a small step back on Friday, halting a strong six-week upward trend. The market's prior gains were supported by vigorous foreign investor interest, spurred by the prospect of being included in a global debt index and easing crude oil prices. Billions have flooded into Indian bonds recently, particularly the key 10-year note, as overseas investors expect substantial passive investment influxes.







