World Economy

India Foreign Inflows Climb

India Foreign Inflows ClimbIndia Foreign Inflows Climb

Indian bonds rose, driving the 10-year yield to its lowest since 2009, as foreign funds continued to pile into local debt and speculation mounted the central bank will cut interest rates as early as next week, Bloomberg reported. Overseas investors bought 4.4 billion rupees ($66 million) of government and corporate notes on Monday, taking inflows this month to 67.4 billion rupees. With the Federal Reserve leaving US borrowing costs on hold, the odds of a “front-loaded rate cut” by the Reserve Bank of India in October have risen, Radhika Rao, Singapore-based economist at DBS Bank Ltd., wrote in a note Tuesday.