MUMBAI: India's benchmark bonds rallied on Monday on news reports that the country could raise the amount foreign institutional investors can buy in government debt by tweaking sub-categories, while keeping the overall limit intact.
NewsRise and Bloomberg reported the government could raise the limit foreign institutional investors (FIIs) can buy in government debt by $5 billion to $25 billion, while reducing the portion that long-term investors can buy to $5 billion from $10 billion.
The tweaks would keep the overall FII limit for government debt investments at $30 billion, NewsRise reported. The Reserve Bank of India may issue the notification to change the norms as early as Monday, according to Bloomberg.
The 10-year benchmark bond yield was trading at 8.73 percent at 1225 India time (0655 GMT), down 4 bps on the day.
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