Indian bonds see sharp foreign outflows in May


Team Udayavani, Jun 15, 2020, 6:47 PM IST

New Delhi: Indian bonds faced sharp foreign outflows in May on worries about rising domestic coronavirus infections, while other Asian fixed income markets attracted inflows on hopes for a swift economic recovery as countries eased lockdowns.

Last month, foreigners sold a net $3.04 billion worth of Indian bonds while they bought a combined net total of $3.12 billion worth of South Korean, Malaysian and Indonesian bonds, data from regional banks and bond market associations showed.

The number of coronavirus cases in India surged in May and last week the country became the world’s fourth worst-hit nation. As of Monday, India had more than 332,000 confirmed cases and about 9,500 deaths.

Earlier this month, Moody’s Investors Service downgraded the country’s credit rating to a notch above junk, citing a prolonged period of slow growth in Asia’s third-largest economy.

“India’s sovereign rating downgrade by Moody’s and the poor growth outlook could further weigh on portfolio flows,” said Khoon Goh, head of Asia research at ANZ.

Overseas investors sold $271.6 million worth of Indian bonds in the first 10 trading days of this month, the data showed.

Thai bonds also faced outflows worth $164 million last month, however, South Korea, Indonesia and Malaysia received $ 2.29 billion, $485 million and $343 million, respectively, in inflows.

While Asian markets fell sharply on Monday on fears about a second wave of coronavirus infections, some analysts said most countries in the region were equipped to handle another outbreak.

China, Korea, Taiwan, Hong Kong, Thailand, and Malaysia have been able to keep any resurgence in daily cases to a manageable range, Morgan Stanley said in a note.

“The risks are in India, Indonesia, and the Philippines,” the brokerage said.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Kinnigoli: Truck carrying red stone collides with Auto-Rickshaw; driver injured

UP govt to install 150,000 toilets for Maha Kumbh, set up paying guest facilities

Kavoor Police arrest two notorious cattle thieves

Udupi: Unidentified body found near Bailkere’s Vidhyodaya School

Sexual harassment case cannot be closed on basis of compromise between parties: SC

MLC Ivan D’Souza defends CM Siddaramaiah’s Lokayukta appearance, criticizes BJP’s ‘Drama’ claims

Ranji Trophy: Shreyas Iyer’s majestic 233 puts Mumbai in complete command against Odisha

Related Articles More

Sensex, Nifty fall over 1 pc, snap two-day rally ahead of US Fed interest rate decision

SC orders liquidation of grounded air carrier Jet Airways’ assets

Home-cooked meals become dearer in October on costlier vegetables

Sensex, Nifty surge over 1 pc on heavy buying in IT stocks as Trump set to win US polls

Das says incoming data on GDP growth mixed but positives outweigh negatives

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

Felling of trees: What is being done to restore Delhi Ridge? SC asks DDA

Kinnigoli: Truck carrying red stone collides with Auto-Rickshaw; driver injured

UP govt to install 150,000 toilets for Maha Kumbh, set up paying guest facilities

Kavoor Police arrest two notorious cattle thieves

Udupi: Unidentified body found near Bailkere’s Vidhyodaya School

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.