FIIs again turn net buyers of government securities

Demand for government securities by foreign institutional investors (FIIs) went up again in the month of May and foreign investors pumped in $2.74 billion following the formation of a stable government led by the Bharatiya Janata Party on May 26. In April, FIIs had turned net sellers as they were not permitted to invest in short-term paper such as treasury bills and sold $1.8 billion.

In the year to date, FIIs have invested $7.8 billion in Indian debt markets.

Also Read

Chef turned woman into ?200-a-night prostitute

World’s fastest bowler: Morne Morkel at a humongous 173.9 kmph at IPL 2013, but Hawk-Eye was not looking

Indian rupee’s ranking slips 5 ranks to 20th in foreign exchange market turnover in 2013

BSNL under CBI lens for suspect Swan deal

Foreign institutional investors (FIIs) mopped up 82.47% of the available $20 billion in government bonds as on June 4, according to data published by the National Securities Depository on Thursday. Currently, R82,091 crore worth of government bonds have been purchased and only R17,455 crore remain under the $20 billion limit, according to the data.

Last year, the government had raised the foreign institutional investment (FII) limit in government bonds by $5 billion to a total of $30 billion.

Demand for the government securities has also pushed the benchmark bond yield down by to 8.53% on Thursday’s close, which was the lowest level since January 2014.