Foreign holding at record high of $16 bn

Aug 22 2014, 04:33 IST
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SummaryForeign holdings in the bond markets are estimated to be around $16 billion in 2014 so far with investment bank JP Morgan having bought securities worth $2.4 billion on Wednesday.

Foreign holdings in the bond markets are estimated to be around $16 billion in 2014 so far with investment bank JP Morgan having bought securities worth $2.4 billion on Wednesday.

Though foreign institutional investor (FII) purchases in the bond markets in a single year are now at their highest, government bonds fell on Thursday after minutes from the US Federal Reserve suggested the prospect of earlier-than-expected rate increases by the US central bank.

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In 2010, FIIs had bought some $10.05 billion worth of bonds.

Foreign institutional investors (FIIs) bought government bonds worth $2.7 billion on August 20, of which 90% was bought by JP Morgan, Bloomberg news reported citing sources. Bloomberg news also reported that JP Morgan’s deals were executed across different maturities in the post-noon session, citing CCIL data.

FIIs have bought 97.42% of the available $25 billion in government bonds, as on August 20, data with National Securities Depository shows. Meanwhile, the benchmark bond yield ended at 8.51% on Thursday's close.

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