Indian bonds hit three-week low following global index exclusion.
Indian Government Bonds
Indian government bond prices declined on Wednesday, driving the benchmark 10-year yield to its lowest level in more than three weeks. This downward pressure stems from continued market disappointment following the exclusion of Indian debt from the Bloomberg Global Aggregate Index.
Investors had anticipated inclusion in the index to drive significant foreign capital inflows. The decision to omit Indian securities has triggered a localized sell-off as traders adjust positions in response to the lack of immediate passive investment catalysts.
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