Foreign investors sell rupee bonds for third week

ECONOMYNEXT – Foreign investors have sold rupee bonds for the third week in a row, with the total stock falling to 103.9 billion rupees from 108.4 billion rupees a week earlier, official data show.

Foreign investments in rupee bonds picked up in the run-up to the elections and there was also stronger buying in the week after election with total holdings rising 120 billion rupees on November 20, up from 108 billion rupees on October 16.

However some selling began after tax cuts were announced.

Bond sales and purchases have varied from time to time as some holders sell and others buy in the past.

Several weeks of sales could then be followed by sales.

However foreigners have been generally on the selling side since April 2018, when a rate hike was enforced with term and reverse repo injections. (Colombo/Dec23/2019)

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