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MARKET EYE-India seen attracting strong foreign demand for bonds
January 22, 2013 / 11:39 AM / 5 years ago

MARKET EYE-India seen attracting strong foreign demand for bonds

MUMBAI, Jan 22 (Reuters) - * India is gearing up to raise
the foreign institutional investor limits in government and
corporate debt by $5 billion each, with Finance Minister P.
Chidambaram confirming an increase that was previously
announced. 
* Judging by the recent strong foreign demand for unused debt
limits, the increased debt available for overseas investors may
easily be absorbed.
* Indian bonds have rallied recently on expectations the RBI
will start cutting interest rates later this month, and on signs
of fiscal discipline from the government. 
* On Monday, the auction of 137.07 billion rupees in government
debt long-term category limits saw demand of 167.42 billion
rupees, with a cut-off of 1.371, according to two sources.
* India also sold 39.54 billion rupees of corporate debt old
category limits, attracting 49.27 billion rupees in bids for a
cut off of 7.25 percent.

 (Reporting by Archana Narayanan)

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