FPI bond selloff tops Rs 8,000 crore as RBI curbs lift hedging costs
Why it matters: Foreign investors have sold over ₹8,000 crore in Indian bonds, increasing hedging costs and bond yields.
- Foreign investors have sold Indian bonds exceeding ₹8,000 crore.
- Reserve Bank of India (RBI) curbs on speculative rupee trading have increased hedging costs.
- Indian bond yields have risen due to the substantial selling pressure.
Foreign investors have offloaded over ₹8,000 crore in Indian bonds, driven by the Reserve Bank of India's new restrictions on speculative rupee trading. These curbs have substantially increased hedging costs, leading to a rise in Indian bond yields and significant selling pressure from foreign portfolio investors.
