Indian Debt Funds to Extend Bond Selloff
Indian mutual funds plan to continue selling government bonds following a recent central bank policy shift. Asset managers have already offloaded billions amid rising rate expectations.
Indian mutual funds are set to offload more government debt after cutting exposure by $4.5 billion since July, as the central bank's policy shift signals a steeper rate-tightening cycle. The Reserve Bank of India raised rates for the first time in nearly four years, triggering a portfolio rebalancing across domestic asset managers. The adjustment reflects growing caution over inflation risks as fixed-income managers trim duration exposure.
