₹48.88 billion of Indian government securities flew into foreign hands Friday, as FPIs snapped an eight‑session selling streak. According to Informist’s latest Clearing Corp. data, the bulk of the inflow hit the 2031, 6.36% bond (₹25.80 billion) and the 2032, 6.54% bond (₹23.60 billion), lifting FPI ownership to 14.42% and 12.10% of the respective issues.
Meanwhile, the 10‑year US Treasury yield hovered near 5%, up 105 bps since the West Asia conflict, while India’s 10‑year benchmark rose 41 bps, narrowing the yield gap and dampening the relative appeal of emerging‑market debt.
Short‑dated gilts saw a 10‑year to 6‑year spread narrowing from 40 bps to 30 bps, signalling a shift toward shorter maturities even as traders brace for a flatter curve. The 2031 paper ended 5 paise higher, outpacing the 10‑year benchmark which fell 15 paise.
With the Fed’s 25‑bps hike and tightening global risk appetite, traders are watching the 2031 bond’s uptick with interest, anticipating a possible short‑term rally in the near future.